Berkshire Hathaway’s $1.6B UnitedHealth Investment Sparks Biggest Gain in Years
Shares of UnitedHealth Group surged more than 9% on Friday after it was revealed that Berkshire Hathaway, led by Warren Buffett, acquired a $1.6 billion stake in the beleaguered health insurer InvestopediaReutersThe Economic Times.
The insurance giant has been facing numerous headwinds, including an ongoing federal investigation into its Medicare Advantage business, a large-scale cybersecurity breach compromising data of nearly 193 million individuals, and the tragic homicide of its insurance unit chief in December Reuters6abc Philadelphia.
Amid these challenges, UnitedHealth’s shares had slumped nearly 46% year-to-date, becoming the worst-performing stock on the Dow Jones Industrial Average ReutersInvestorsThe Wall Street Journal.
Ad:
Per a recent Securities and Exchange Commission filing, Berkshire Hathaway held approximately 5.04 million shares—about $1.57 billion—by June 30 ReutersThe Economic TimesInvestopedia.
Investors interpreted the move as a powerful confidence signal coming from Buffett, historically known for stepping in when companies face crises—a sentiment echoed by market watchers ReutersInvestors.
Moreover, this wasn’t the only strategic shift in Berkshire’s portfolio: in the same filing, the conglomerate also disclosed new positions in Nucor, D.R. Horton, Allegion, and Lamar Advertising, while trimming holdings in Apple and exiting T-Mobile InvestopediaThe Economic TimesBusiness Insider.
The market responded enthusiastically: the Dow Jones rose to intraday record highs—driven largely by UnitedHealth’s rally, which contributed over 167 points to the index—and broader investor optimism around potential interest rate cuts MarketWatchThe Economic TimesInvestors.
In summary: Berkshire Hathaway’s significant purchase of UnitedHealth stock appears to have reignited investor confidence, catalyzing a sharp rebound amid troubling news—affirming Buffett’s reputation for precise, opportunistic investing during uncertain times.
