Berkshire Hathaway Takes UnitedHealth Stake, Boosting Health Insurers

Warren Buffett's Berkshire Hathaway has acquired a $1.6 billion stake in UnitedHealth Group, leading to a 14% increase in UnitedHealth's shares to $308.74. Other health insurers, such as Oscar Health, Centene, Molina Healthcare, Elevance Health, CVS Health, Humana, and Cigna, also rose between 2.4% and 5.3%. The move suggests that Berkshire Hathaway believes in UnitedHealth's turnaround, despite the company's recent challenges, including a pullback in Medicare funding and the shooting death of a top executive.

Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) has acquired a $1.6 billion stake in UnitedHealth Group (UNH), sending the insurer's stock higher in extended hours trading. The investment, disclosed in a regulatory filing, marks a significant move by the conglomerate and signals confidence in UnitedHealth's turnaround efforts.

The Omaha, Nebraska-based company purchased more than 5 million shares of UnitedHealth last quarter, according to the filing. The stake, valued at approximately $1.6 billion, positions UnitedHealth as the 18th-biggest position in Berkshire's equity portfolio [3]. The investment comes amid a series of challenges for UnitedHealth, including a pullback in Medicare funding and the shooting death of a top executive.

UnitedHealth's stock surged 14% to $308.74 in extended trading following the disclosure. The insurer has been under pressure due to rising healthcare costs and investigations into its Medicare billing practices. Despite these challenges, Berkshire's investment suggests a belief in UnitedHealth's potential for recovery.

Other health insurers also saw gains following Berkshire's investment. Oscar Health, Centene, Molina Healthcare, Elevance Health, CVS Health, Humana, and Cigna all experienced increases in their stock prices, ranging from 2.4% to 5.3% [3].

Warren Buffett, who is set to retire as CEO at the end of the year, has been critical of the U.S. healthcare system's high costs. His investment in UnitedHealth may reflect a strategic move to capitalize on the potential for improvement in the sector. The filing does not specify who at Berkshire handled the investment, but it is likely that Buffett's investment lieutenants, Ted Weschler and Todd Combs, were involved [2].

Berkshire's investment in UnitedHealth follows other notable moves by the conglomerate, including small stakes in steel manufacturer Nucor, outdoor advertising company Lamar Advertising, and security firm Allegion. The company also re-entered the homebuilder market by taking stakes in Lennar and DR Horton [3].

UnitedHealth has been facing a series of difficulties, including investigations into its Medicare billing practices and the shooting death of its CEO, Brian Thompson. Despite these challenges, the insurer has seen a significant rebound in its stock price following Berkshire's investment.

References:
[1] https://finance.yahoo.com/video/warren-buffetts-berkshire-hathaway-reports-132822475.html
[2] https://apnews.com/article/unitedhealth-buffett-berkshire-hathaway-0e3cad5d2a9efa01ba9605674a513092
[3] https://www.cnbc.com/2025/08/14/warren-buffetts-berkshire-hathaway-unh.html