Warren Buffett’s conglomerate Berkshire Hathaway has revealed a significant stake in troubled insurer UnitedHealth Group. The move comes after the company pulled its annual earnings outlook and CEO stepped down amid public backlash over rising healthcare costs.
Buffett’s investment of 5 million shares, worth about $1.6 billion, has sent shares soaring. Analysts say it represents a big vote of confidence in UNH and could provide a near-term trading floor for investors. The company is facing a Justice Department investigation into its Medicare billing practices, which have contributed to the stock’s decline.
Shares were down nearly 50% year-to-date before Buffett’s filing. Despite this, the move by Berkshire Hathaway has lifted UnitedHealth’s shares by 12%, their best daily performance since March 2020. The investment is seen as a sign that investors believe the company can recover and regain investor confidence.
Source: https://www.cnbc.com/2025/08/15/unitedhealth-shares-soar-after-warren-buffetts-new-stake-provides-a-vote-of-confidence.html