Warren Buffett’s Berkshire Hathaway has made a bold move back into healthcare, acquiring about 5.04 million shares of UnitedHealth Group (UNH) worth roughly $1.57 billion as of June 30, 2025.
This new stake, revealed in the company’s latest 13F filing with the SEC on August 14, marks Buffett’s return to the health insurance giant after exiting a previous position over a decade ago, from 2006 to 2009.
The purchase comes at a time when UNH stock has tumbled more than 50% year-to-date in 2025, hammered by a series of setbacks. These include a U.S. Department of Justice antitrust investigation, escalating medical costs, a major cyberattack, and the tragic shooting death of CEO Brian Thompson in July.
Trading around $300 to $310 per share during Q2, the stock hit multi-year lows, presenting what Buffett likely sees as a value opportunity in a high-quality business. By quarter-end, the UNH holding accounted for about 0.6% of Berkshire’s $259 billion equity portfolio, ranking as its 18th-largest position.
News of the investment sparked an immediate market rally. UNH shares jumped 10% to 13% in after-hours trading on August 14, reclaiming the $300 level and adding approximately $50 billion to the company’s market cap in pre-market trading on August 15. As of early August 15, the stock was up about 12.8%, reflecting investor confidence in Buffett’s endorsement amid UNH’s challenges.
Buffett isn’t the only big name betting on a UNH rebound. Hedge fund managers like Michael Burry of Scion Asset Management added shares and call options, while David Tepper’s Appaloosa Management increased its stake to around $764 million in Q2.
Analysts maintain a “Moderate Buy” rating on UNH with a $310 price target, viewing the stock’s dip as temporary despite ongoing headwinds.
This UNH buy fits into broader Q2 portfolio adjustments at Berkshire. The conglomerate boosted its Chevron (CVX) holdings by 3.45 million shares (a 2.91% increase) and initiated new positions in homebuilders like Lennar, as well as increases in Constellation Brands (STZ) and Pool Corp (POOL).
On the sell side, Berkshire trimmed its massive Apple (AAPL) stake by 20 million shares (6.67% reduction), cut Bank of America (BAC) by 26.3 million shares (4.17%), and fully divested from T-Mobile (TMUS).
Remember, 13F filings provide a snapshot at quarter-end and don’t reflect trades after June 30. Speculation abounds that Berkshire may have scooped up more UNH shares during July’s steeper decline, but confirmation awaits the next filing. Overall, this move underscores Buffett’s timeless strategy: investing in resilient companies at discounted prices during turmoil.
The healthcare sector, valued at trillions, remains a growth engine despite regulatory pressures. UNH, as the largest U.S. health insurer, controls key segments like Medicare Advantage and Optum services. With Buffett’s vote of confidence, investors are watching for a potential turnaround.
