UnitedHealth’s stock surged by more than 11% to US$ 301.46 during pre-market trading on Friday, following a fresh investment from Warren Buffett’s Berkshire Hathaway, which boosted investor trust in the struggling health company.
Berkshire Hathaway possessed 5.04 million UnitedHealth shares valued at approximately $1.57 billion as of June 30, as disclosed in a report by the Securities and Exchange Commission (SEC) on Thursday.
Buffett owned approximately 1.18 million UnitedHealth shares from 2006 to 2009, but he sold all of them in 2010 during a general decline in health insurance companies.
The company is facing various difficulties that have emerged in the last two years, such as rising expenses, a federal probe into its government-backed health programs, a cyber assault on its tech division impacting the personal data of over 192 million Americans, and the assassination of the leader of its insurance segment in December.
UnitedHealth, once known for its consistent profitability, failed to meet Wall Street’s profit forecasts in the last two quarters. As a result, its stock plummeted by nearly 46% in 2025, marking the poorest performance in the Dow Jones Industrial Average Index for the year.
Buffett’s expertise lies in company strengths.
Buffett made successful investments in companies that he believed had long-term strategic value, even during challenging periods.
He bought shares in Occidental Petroleum in 2019 during its merger attempt with Anadarko Petroleum and kept investing despite its underperformance. He also gained attention for investing in Goldman Sachs during the 2008 financial crisis.
Buffett’s acquisition provides reassurance to numerous investors who have viewed UnitedHealth as volatile due to recent fluctuations in its stock price, stated Kevin Gade, operations director at Bahl & Gaynor, a UnitedHealth shareholder.
Several well-known hedge funds, such as Appaloosa Management led by David Tepper, Lone Pine Capital, and Two Sigma Investments, purchased UnitedHealth shares based on recent regulatory disclosures.
Buffett’s support confirms UnitedHealth’s long-term value, but the company must regain trust and credibility with investors to restore its reputation for success, according to James Harlow, senior vice president at Novare Capital Management.
Andrew Witty, the company’s CEO, departed suddenly in May due to growing operational and financial challenges, leading to Stephen Hemsley assuming the role.
The company recently projected a yearly adjusted profit target of at least $16, which is significantly lower than the analysts’ revised estimate of $20.91.
UnitedHealth’s current actions are being discussed at approximately 15.8 times the projected profits, which is lower than its five-year average of 19.
UnitedHealth still has significant uncertainties ahead, but it is positive that this respected investment firm shares a similar view to ours regarding the market’s overly pessimistic long-term assumptions, according to Morningstar analyst Julie Utterback.
Centene, Humana, and Molina Healthcare competitors saw their stocks rise by 1.5% to 4% in pre-market trading.
Berkshire unveiled new investments in Nucor, Allegion, and Lamar Advertising on Thursday. Nucor’s stock increased by around 5% to $151.46.
