Buffett’s Berkshire Hathaway buys 5 million UnitedHealth shares, reveals new stake in insurer

Warren Buffet calmed some nerves in the United Health Group boardroom after the billionaire's Berkshire Hathaway bought 5 million shares of the struggling health giant, sending its stock soaring–by seven percent in after-hours trading, a regulatory filing on Thursday showed. Buffett previously owned 1.18 million shares between 2006 and 2009, but sold all of them in 2010 during a broader exit from health insurers.

UnitedHealth faces big problems

UnitedHealth is facing soaring medical costs, federal investigations, the death of a top executive, and a cyberattack last year. The company recently issued a far lower profit forecast due to expected billions in additional costs in coming quarters. UnitedHealth shares have dropped 46% so far in 2025, as reported by Reuters.

Berkshire bought the 5 million shares worth about $1.6 billion at the end of June, making it the 18th biggest investment in its portfolio, behind Amazon and Constellation Brands. Berkshire’s total equity portfolio is around $300 billion, so Buffett’s investment managers, Todd Combs and Ted Weschler, may have been responsible for this purchase rather than Buffett himself, as reported by CNBC.

Buffett had previously used his investment managers for big moves, like the Amazon investment in 2019. Before Berkshire’s filing, UnitedHealth stock was down nearly 50% in 2025. The company has become a symbol of public anger in the U.S. over rising healthcare costs. UnitedHealth is currently under a Justice Department investigation for Medicare billing practices, as per the reports.

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In May, UnitedHealth pulled its annual earnings outlook, and CEO Andrew Witty stepped down. Last month, the company issued a new 2025 outlook that was much lower than Wall Street estimates, hitting the stock further. Buffett, turning 95 this month, has criticized the U.S. healthcare system, calling it a “tapeworm” on the economy because of high costs.

Berkshire makes other investments

In 2018, Buffett, Jeff Bezos, and Jamie Dimon launched a joint venture to improve healthcare for employees and potentially all Americans, but it was eventually shut down. Berkshire also made other investments last quarter, buying small stakes in steel company Nucor, outdoor ad company Lamar Advertising, and security firm Allegion. Berkshire returned to homebuilders Lennar and DR Horton last quarter, as stated by CNBC.

After the filings, Nucor shares rose nearly 8%, while Lennar and DR Horton went up about 3% each. Buffett will step down as Berkshire CEO at the end of the year, handing over to Greg Abel, but will remain chairman of the board. It is unclear who will manage Berkshire’s huge equity portfolio, though Buffett hinted Abel may make all capital allocation decisions, as per the reports.

FAQs

Q1. Why did Berkshire Hathaway buy UnitedHealth shares?
Berkshire Hathaway bought 5 million UnitedHealth shares, likely as a bargain investment despite the insurer’s current problems.

Q2. How is UnitedHealth performing in 2025?
UnitedHealth shares have dropped nearly 50% in 2025 due to rising costs, investigations, and lower profit forecasts.