UnitedHealth Group shares jumped sharply today after it was revealed that Warren Buffett’s Berkshire Hathaway has taken a significant new position in the health insurance giant. The SEC filing showed that Berkshire purchased approximately 5.04 million shares, valued at around $1.57 billion as of the end of June.
The investment comes at a challenging time for UnitedHealth, which has faced multiple setbacks in recent months. Rising healthcare costs, a federal investigation into billing practices, the fallout from a major cyberattack, and leadership turmoil have weighed heavily on the company. It also missed second-quarter earnings expectations and issued a weaker outlook, making it one of the worst-performing Dow Jones stocks this year.
Despite these headwinds, Berkshire’s move is being seen as a strong signal of long-term confidence in the insurer’s fundamentals. This is Berkshire’s first stake in UnitedHealth since it exited the company in 2010, making it a notable strategic shift. The purchase now positions UnitedHealth as Berkshire’s 18th-largest holding, behind major names like Amazon and Constellation Brands.
Alongside the UnitedHealth investment, Berkshire also disclosed new stakes in steelmaker Nucor, homebuilders Lennar and D.R. Horton, and companies in the security and advertising sectors. At the same time, it trimmed positions in Apple, Bank of America, T-Mobile, and Charter Communications, continuing its recent pattern of being a net seller of stocks.
The market reaction was swift. UnitedHealth shares rose as much as 13% in intraday trading, a classic example of the “Buffett effect,” where stocks often rally after news of Berkshire’s involvement.
With Warren Buffett expected to step down as CEO by the end of the year, this investment could be one of his final major portfolio moves. Whether it was driven by Buffett himself or his top investment managers, Ted Weschler and Todd Combs, the decision signals a calculated bet that UnitedHealth can overcome its current challenges and return to long-term growth.