Aug 15 - UnitedHealth Group (NYSE:UNH) shares soared 10% Friday morning after Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway revealed a stake of 5 million shares, valued at roughly $1.6 billion. The move sent the stock up 12% in morning trading, marking its best day in five years and adding about 209 points to the Dow Jones Industrial Average at the open.
Warning! GuruFocus has detected 5 Warning Sign with UNH.Warren Buffett Sparks Massive Rally in Troubled UnitedHealth Stock
Buffett's vote of confidence comes as UnitedHealth faces a challenging year. The stock had fallen nearly 50% through Thursday, weighed down by rising healthcare costs, a Justice Department investigation into Medicare billing practices, and CEO Andrew Witty's recent departure. The company had also pulled its annual earnings outlook in May, and its updated 2025 guidance fell short of Wall Street estimates.
Legendary investors Michael Burry (Trades, Portfolio) and David Tepper (Trades, Portfolio) also disclosed sizable stakes in the insurer, signaling renewed interest in the sector. George Hill, healthcare analyst at Deutsche Bank, commented that Berkshire's investment could act as a near-term trading floor for managed care stocks, reassuring other investors that the space is safe to consider again.
This article first appeared on GuruFocus.
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Warren Buffett Sparks Massive Rally in Troubled UnitedHealth Stock
Published 2 months ago
Aug 15, 2025 at 10:00 PM
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