Warren Buffett’s Berkshire Hathaway has made a significant new investment in UnitedHealth Group, acquiring around 5 million shares valued at approximately $1.57 billion as of June 30, 2025. This move sparked a sharp surge in UnitedHealth’s stock price, with shares jumping over 12% in premarket trading and in the 10-11% range during early trading today.
The investment signals Buffett’s confidence in UnitedHealth despite the company’s recent challenges, which include rising health care costs, a U.S. Department of Justice probe into its billing practices, a cyberattack, and the tragic murder of a top executive in December 2024. UnitedHealth’s stock had been severely impacted in 2025, falling nearly 46%, making it the worst performer on the Dow Jones Industrial Average this year prior to this investment news.
Berkshire Hathaway’s purchase reflects a belief that the market is overly pessimistic about UnitedHealth’s long-term prospects. The company is currently trading at about 15.8 times its forward earnings estimate, below its five-year average of 19, indicating an attractive valuation for value investors like Buffett.
Additionally, the leadership change with Stephen Hemsley taking over as CEO after Andrew Witty’s departure in May 2025 may have contributed to investor optimism. Hemsley previously led UnitedHealth from 2006 to 2017 during a period that overlapped with Berkshire Hathaway’s earlier investment in the company.
This investment is part of Berkshire Hathaway’s broader portfolio adjustments, including new stakes in companies like steelmaker Nucor, security provider Allegion, and outdoor advertiser Lamar Advertising.
Overall, Buffett’s move is viewed as a “vote of confidence” in UnitedHealth and the health insurance sector, potentially signaling a buying opportunity despite current headwinds facing the insurer. UnitedHealth’s shares responded positively, reflecting renewed investor interest and optimism about the company’s future recovery and growth potential.
