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Home > Business > 5 Million Shares, $1.57 Billion: Why Warren Buffett Is Betting Big On UnitedHealth Now

5 Million Shares, $1.57 Billion: Why Warren Buffett Is Betting Big On UnitedHealth Now

Billionaire Warren Buffett’s Berkshire Hathaway has purchased 5 million shares of UnitedHealth Group, sending the insurer’s stock up sharply. This marks Buffett’s return to UnitedHealth after exiting in 2010. The move comes amid challenges for the healthcare giant, including rising costs and federal probes.

Published By: Zubair Amin
Published: August 15, 2025 04:06:46 IST

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Berkshire Hathaway, the holding company of billionaire investor Warren Buffett, has purchased 5 million shares of UnitedHealth Group, according to a regulatory filing on Thursday. The surprise purchase sent shares of the health insurer up 7% in extended trading.  

Warren Buffett UnitedHealth Shares

Buffett previously owned about 1.18 million shares in UnitedHealth between 2006 and 2009, before selling his entire stake in 2010 during a broader exit from health insurer investments.  

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The investment comes at a time when UnitedHealth is facing multiple challenges, including soaring medical costs, federal investigations, the aftermath of the killing of a top executive, and a cyberattack last year.

The healthcare conglomerate has also issued a lowered profit forecast, citing billions in additional costs in the upcoming quarters. Shares of the Dow component have fallen 46% so far this year.  

What Berkshire Hathaway’s Latest Filings Reveal

Berkshire Hathaway’s recent filings also indicate that it shed 20 million of Apple, its biggest holding, in the second quarter, lowering its stake to 280 million shares worth $65 billion. The conglomerate also shed 26 million Bank of America shares, cutting its stake to 605 million shares worth $28 billion.

Moreover, Berkshire reported new buys and enhanced positions in a number of other firms, such as Allegion, a security products company; DR Horton, a housebuilder; Lamar Advertising, an outdoor advertiser; Nucor, a steelmaker; and Lennar, a housebuilder, where Berkshire more than doubled its position.

The market reacted favorably to Berkshire’s buys. UnitedHealth stock climbed 8.1% to $293.50 in late trading. Nucor stock gained 7% to $154.50, Lennar gained 4% to $135.45, D.R. Horton gained 2.5% to $168.03, and Lamar Advertising gained 4.8%. Berkshire’s acquisition of over a million shares of Lamar Advertising in the second quarter led to the stock’s gains.

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