Berkshire Hathaway’s $1.6B UnitedHealth Stake Sends Shares Surging

A Bold Re-Entry: Berkshire Takes a $1.6B UnitedHealth Stake

In a surprising yet strategic move, Berkshire Hathaway disclosed an acquisition of approximately 5 million shares in UnitedHealth Group, valued at around $1.57 billion by the end of June. This fresh position comes amidst a tumultuous year for the health insurer, and the announcement triggered a powerful UnitedHealth stock surge—shares jumped more than 12% premarket and nearly 8.5% after hours as markets reacted to the news.

Riding the “Buffett Effect”

The sudden rebound in UnitedHealth shares underscores the Buffett effect—the market’s confidence that Warren Buffett’s value investing instinct signals deep, long-term potential. It’s especially notable given UnitedHealth’s recent struggles: a cyberattack, soaring medical costs, regulatory scrutiny, and the tragic death of an executive cast a shadow over the company.

Why This UnitedHealth Investment Matters

This isn’t just any addition to the Berkshire portfolio—it marks a rare return to the healthcare sector. The UnitedHealth stake is now one of Berkshire’s major bets, highlighting a renewed appetite for risk amid market volatility. For context, Berkshire Hathaway investment in this sector has historically been cautious, making this one all the more remarkable.

Wider Portfolio Moves in Q2 2025

Berkshire’s SEC filing also revealed several other strategic shifts:

• Apple stake trimmed: Sold about 20 million shares, reducing its long-held position.
• Exits and reductions: Fully exited T-Mobile and reduced holdings in Bank of America and Charter Communications.
• New positions added: Significant stakes in DR Horton, Lennar, Allegion, Lamar Advertising, and Nucor, ranging from homebuilders to steel and security products.
• Cash pile remains massive: Berkshire ended Q2 with a whopping $344 billion in cash and equivalents, underscoring its ongoing challenge to find worthy long-term buys.

Berkshire’s Strategy as Buffett Nears Retirement

As Warren Buffett prepares to retire at the end of 2025, these moves reflect a deliberate reshuffle in his final investment playbook. The Q2 2025 portfolio moves appear to lean into sectors with resilience—healthcare and housing—while trimming back more mature positions.

A Calculated Risk in Troubled Waters

UnitedHealth is no stranger to pressure: its stock has plunged nearly 46% year-to-date, and it’s navigating a federal Justice Department investigation over billing practices. Yet, the Berkshire Hathaway investment in this beleaguered company signals a bet on recovery. As investors digest this move, many are viewing it through the lens of Buffett’s long-term conviction. This UnitedHealth stake is more than just a portfolio footnote—it’s a strategic statement. As the Buffett effect reignites market optimism, Berkshire seems confident that UnitedHealth’s current woes are temporary and ripe for a turnaround. Combined with selective value investing strategies and broader portfolio reshaping as Buffett nears the end of his tenure, this quarter’s moves will be studied for years.