Berkshire buys UnitedHealth stake

Berkshire Hathaway disclosed a new UnitedHealth stake valued at about $1.6 billion, reflecting continued value-oriented bets in a troubled sector.

Buffett Adds Stake in UnitedHealth Amid Health Care Costs Debate

Berkshire Hathaway reported buying more than 5 million shares of UnitedHealth Group, a stake valued at about $1.6 billion at the end of June. The move places UnitedHealth as the 18th largest holding in Berkshire’s portfolio, which remains dominated by Apple, American Express, Bank of America, Coca-Cola and Chevron. Berkshire’s broader activity this quarter included small bets in Nucor, Lamar Advertising and Allegion, along with adds to Lennar and DR Horton, while trimming positions in Apple and Bank of America.

UnitedHealth has faced renewed scrutiny and weaker outlooks. The insurer’s stock has fallen about 50% in 2025 through recent trading, and the company is under a Justice Department probe into Medicare billing practices. May earnings guidance was pulled, and CEO Andrew Witty stepped down last month. Buffett has noted that one of his investment managers was behind the Amazon investment in 2019, underscoring Berkshire’s collaborative approach to capital allocation. Buffett, who turns 95 this month, is preparing to hand day-to-day leadership to Greg Abel at year end, though he will remain chairman and influential over capital decisions.

The new UnitedHealth stake comes as Berkshire navigates a portfolio of global bets during a period of regulatory and political pressure on the healthcare system. It signals a willingness to buy into beaten-down names when price meets value, a hallmark of Buffett’s long horizon applied to a controversial sector.

This is a classic Berkshire move: buy when prices reflect fear rather than fundamentals. UnitedHealth’s long-term value proposition remains intact for many investors, even as near-term regulatory headlines create volatility. Berkshire’s strategy shows that price weakness can open a door for patient, value-based bets rather than quick wins. The move also highlights the company’s evolving leadership arc; Abel is expected to steer capital allocation while Buffett steps back from daily operations, a shift that will test Berkshire’s ability to balance discipline with opportunism.

The stake underscores a broader market question: how far public scrutiny and regulatory risk can weigh on health care stocks. Berkshire has historically trusted the long view, betting on durable franchises at reasonable prices. If that approach holds, the UnitedHealth bet could become a case study in turning headwinds into long-run strength, even as the sector remains a political flashpoint and investors measure impact through the next quarterly report.

Highlights

Patience remains Berkshire’s strongest asset as the portfolio shifts with the market’s mood.