UnitedHealth Group Stock Jumps as Warren Buffett and Michael Burry Take Positions

UnitedHealth Group Inc. (UNH) shares rose 10.57% to $300.18 on Friday after investors Michael Burry and Warren Buffett took positions in the insurance giant. Burry purchased call contracts against 350,000 shares, while Buffett's fund bought over 5 million shares. The holdings suggest Burry is betting on a sector turnaround, particularly as Medicare Advantage rates have exceeded expectations for 2026. UNH reported Q2 adjusted earnings of $4.08, down from $6.80 a year ago, and reestablished its FY25 guidance.

UnitedHealth Group Inc. (UNH) shares rose 10.57% to $300.18 on Friday, following significant investments by legendary investors Michael Burry and Warren Buffett. Burry purchased call contracts against 350,000 shares, while Buffett's fund bought over 5 million shares [3]. The holdings suggest Burry is betting on a sector turnaround, particularly as Medicare Advantage rates have exceeded expectations for 2026. UNH reported Q2 adjusted earnings of $4.08, down from $6.80 a year ago, and reestablished its FY25 guidance.

Burry's investment in UNH follows his well-documented contrarian approach, as seen in his bet against the subprime mortgage market before the 2008 financial crisis [3]. Buffett's $1.6 billion stake in UNH, disclosed in a recent SEC filing, reflects his long-term view on the healthcare sector's resilience and potential for growth [2].

The Q2 earnings report indicated a challenging period for UNH, with a decline in adjusted earnings and a revision of FY25 guidance. However, the company's Medicare Advantage strategy, focusing on growth and profitability, provides a glimpse into its future prospects [4].

The market's response to these investments underscores the influence of high-profile investors on stock prices. UNH's shares have been volatile due to regulatory scrutiny and operational challenges, but the recent investments signal a potential turnaround. Investors should closely monitor UNH's future earnings reports and guidance for further insights into the company's trajectory.

References:
[1] https://www.ainvest.com/news/stock-analysis-unitedhealth-group-outlook-mixed-bag-signals-strong-fundamentals-2508/
[2] https://www.cnbc.com/2025/08/15/unitedhealth-shares-soar-after-warren-buffetts-new-stake-provides-a-vote-of-confidence.html
[3] http://www.baystreet.ca/articles/stockstowatch.aspx?id=21432
[4] https://www.ainvest.com/news/buffett-bet-unitedhealth-future-medicare-advantage-strategic-analysis-cvs-health-position-2508/