Home / Business and Economy / Buffett Bets Big on Struggling UnitedHealth, Shares Soar
Buffett Bets Big on Struggling UnitedHealth, Shares Soar
14 Aug
Summary
- Berkshire Hathaway bought 5 million UnitedHealth shares
- UnitedHealth faces high costs, investigations, and low profits
- Buffett's investment boosts UnitedHealth stock by 7%
In a surprising move, Warren Buffett's Berkshire Hathaway has purchased 5 million shares of UnitedHealth Group, the struggling healthcare company. This investment, worth around $1.6 billion, has sent UnitedHealth's stock soaring by 7% in after-hours trading on Thursday.
UnitedHealth has faced a series of challenges in 2025, including soaring medical costs, federal investigations, the death of a top executive, and a cyberattack last year. The company has also issued a much lower profit forecast due to expected billions in additional costs in the coming quarters. As a result, UnitedHealth's shares have dropped nearly 50% so far this year.
Despite these difficulties, Buffett's Berkshire Hathaway has decided to make a significant bet on the company. This move marks a return to the healthcare sector for Buffett, who previously owned a smaller stake in UnitedHealth between 2006 and 2009 before selling it off in 2010.
Berkshire's investment in UnitedHealth is now the 18th largest in its portfolio, behind companies like Amazon and Constellation Brands. While Buffett himself may not have been directly responsible for this purchase, it demonstrates Berkshire's continued interest in the healthcare industry and its willingness to invest in companies facing challenges.
