Warren Buffett $1.6 Billion bet Why Trust Troubled UnitedHealth
Big news it the US stock market thursday night warren buffetts berkshire hathaway has bought a new stake in health insurance giant unitedhealth
The company is currently in deep trouble so the move came as a surprise to many investors but for those who know Buffett’s logstandig bargain investing strategies it probablt not surprising
A whopping $1.6 Billion deal
According to regulatory filings, Berkshire bought more 5 million shares of UnitedHealth in late june worth a total of about $1.6 billion
With the purchase unitedhealth is now the 18th largest holding in berkshire nearly $3oo billion equity portfolio right after Amazon and constellation brands
Was it Buffetts decision or the team
History show that many of bershire biggest investment moves have been made on the advice of not just buffett but two of his trusted aides todd combs and Ted Weschler
The 2019 investment in amazon was also an initiative of one of those managers this time too it is possible that the real architect of the unitedhealth deal is his team rather than buffett
Market reaction 6% Jump
As soon as this news came out unitedhealth shares rose 6% in extended trading
This jump has come at a time when the company shares were down about 5O% so far in 2025
UnitedHealth crisis trust broken price fell
- UnitedHealth America largest private health insurer has been facing intense criticism and government investigations for the past one year
- There is public anger due to the continuous increase in healthcare costs
- The justice department is investigating the company medicare billing parctices
- In may the company withdrew its annual profit forecast sparking panic among investors
Conclusion New signal to the market
Many investors are taking Buffetts move as a vote of confidence on one hand the company is facing a crises on the other one of the world most successful investors has invested billions of dollars now all eyes will be on whether buffetts finding gold in a dip approach will work again
