Warren Buffett’s Berkshire Hathaway buys 5M UnitedHealth shares, boosting stock amid healthcare challenges. Photos/X.
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.
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.
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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Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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