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Berkshire Dumps UNH Stock After Less Than a Year
18 May
Summary
- Berkshire Hathaway sold its entire UnitedHealth stake.
- UnitedHealth faces a Medicare enrollment moratorium.
- Company plans to cut 1.3 million Medicare Advantage members.
Berkshire Hathaway, under new CEO Greg Abel, has divested its complete holding in UnitedHealth Group (UNH), a position held for less than twelve months. This high-profile exit occurred during the first quarter of 2026, a period of broader portfolio adjustments for Berkshire.
UnitedHealth is currently grappling with intense pressure from a federal moratorium on new Medicare enrollments for home healthcare providers. This regulatory uncertainty is compounded by the company's strategic decision to cut 1.3 million members from its Medicare Advantage programs to safeguard profitability against escalating medical expenses.
Adding to these headwinds, UNH remains under Department of Justice scrutiny regarding its billing practices. Despite these challenges and a year-to-date stock decline of approximately 20% by early May 2026, the company reported first-quarter financial results that exceeded profit expectations and raised its full-year earnings forecast.
