Warren Buffett is investing in UnitedHealthcare Group with a $1.6 billion stake, causing the company’s shares to surge 21% over the past week – its largest weekly gain in 16 years. The move comes as investors seek out healthcare stocks after Buffett’s interest in the sector.
The Department of Justice (DOJ) probe and fatal shooting of executive Brian Thompson outside a New York City hotel last year have cast a shadow over UnitedHealthcare. However, Buffett’s Berkshire Hathaway has been buying up shares, signaling confidence in the company’s long-term prospects.
UnitedHealthcare’s stock is still down more than 50% over the past year, but Buffett’s investment is helping to revive the stock. Other investors are taking note, with Vanguard Health Care Index Fund ETF Shares and The Health Care Select Sector SPDR Fund also seeing increased interest.
Buffett’s stake in UnitedHealthcare comes as the company faces a DOJ probe and internal turmoil following Thompson’s death. Luigi Mangione has been charged with murder in connection with the fatal shooting.
Despite these challenges, Buffett’s investment is helping to lift UnitedHealthcare’s stock. The company’s shares are now part of the Dow Jones Industrial Average, which reached a new record and is on track for its first record close of 2025.
Source: https://www.foxbusiness.com/markets/buffett-sparks-unitedhealths-biggest-weekly-stock-surge-16-years