Buy the Dip Over Chasing Highs? Which Crashed Stocks Are Worth a Bet?

Tiger_comments
08-15

Right now, Buffett’s “cigar butt” strategy—buying severely oversold large-cap stocks—may be more suitable. Yesterday, $UnitedHealth(UNH)$ jumps 10%.

Yesterday, $UnitedHealth(UNH)$ staged a stunning turnaround as Warren Buffett scooped up $1.6 billion worth of shares.

Berkshire Hathaway built a new $1.6 billion position in U.S. health insurance giant UnitedHealth in Q2, acquiring 5.039 million shares at an average cost of $314 each.

It’s not just Buffett—top global quant fund Renaissance Technologies, David Tepper’s Appaloosa Management, and legendary investor Michael Burry have also piled in. While short-term regulatory and cost risks can’t be ignored, the company’s valuation has fallen to historic lows.

Is it smarter to buy the dip now rather than chase highs?

Before $NVIDIA(NVDA)$ earnings, the stock may remain volatile at high levels. But one risk to note: in the AI space, the two biggest bubbles— $Palantir Technologies Inc.(PLTR)$ and NVDA—are at risk.

What other heavily sold-off stocks are worth scooping up?

Lululemon has already been cut in half this year, plunging below $200; Novo Nordisk is down 40% YTD; and Eli Lilly dropped 15% just before its recent earnings.

Some influencers suggest that, given Trump’s targeting of UNH and Intel, UPS could be the next company the Trump family “lays in wait” for. This is because the earlier “Big and Beautiful” Act removed the duty-free threshold for small parcels. In a previous earnings call, UPS’s CFO said, “This quarter, changes in U.S. trade policy led to a 34.8% drop in our China-U.S. route volume in May and June—worse than we expected.”

Questions for discussion

  1. After jumping 10%, Buffett’s cost basis is still higher than the current market price.

  2. Would you still buy UNH now?

  3. Which heavily sold-off stocks would you buy on the dip?

  4. Do you know other stocks that are oversold?

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# 5x Winners vs. 50% Losers: Buy High, Ride Higher? Or Buy Low, Go Big?

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Comment（36）

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  • Shyon
    ·08-15
    TOP
    I still find UNH attractive even after its 10% jump. Buffett’s $314 average cost means the stock is still below his entry, and valuation remains near historic lows. While regulatory and cost risks exist, they seem priced in, making it appealing for long-term investors like me.

    Outside UNH, I’m eyeing Lululemon under $200 after being cut in half this year, and Novo Nordisk’s 40% drop despite its GLP-1 market strength. Eli Lilly’s 15% pre-earnings dip could also be a buying chance for those confident in its pipeline. When sentiment turns, the recovery could be sharp.

    UPS is also on my watchlist. Trade policy changes hit China-U.S. volumes hard, but it’s still a global logistics leader. If political pressure pushes shares lower, it could be a classic Buffett-style bargain—better than chasing inflated AI names. In a market full of hype, I’d rather quietly collect undervalued blue chips and let time do the compounding.

    @Tiger_comments @TigerStars

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    • BarcodeReplying toShyon: 
      Cheers Shyon, 💯 let’s Go 🚀
      08-15
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    • ShyonReplying toBarcode: 
      My pleasure, gogogogo
      08-15
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    • BarcodeReplying toShyon: 
      🙏🏼 Thanks for the 🏷️ Shyon [Salute][ShakeHands][Heart]
      08-15
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  • MHh
    ·08-17
    TOP
    So happy that I bought UNH and my cost price is lower than the current price and of course, below buffett’s. Happy that many heavyweights bought UNH and lifted the price. I bought UNH purely based on valuation as it is heavily discounted and there is not alot of room to go down. I wouldn’t buy UNH now as this is above my cost price although many would also argue that the upside back to its previous $600 is still a big one. I prefer to manage my risk and my greed[LOL]. I was very tempted to buy Novo Nordisk and Eli but decided to stick to my principles of never buying pharmaceutical companies. This is because one can never predict when another company will have a blockbuster and kills off the revenue of the company that one has already bought. This is now happening between Lilly and Novo Nordisk with the anti obesity drugs. Another company may announce their new drug and reduce the revenue for these 2 companies. I think BYD is oversold given their market capture. Will look to buying it.
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  • 1PC
    ·08-16
    TOP
    I won't Buy UNH but might consider ELI [Chuckle], it's still a Strong Medical player , waiting for a suit time & funds to deploy [Pitiful] @Jes86188 @koolgal @Shernice軒嬣 2000 @JC888 @Barcode @Shyon
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    • Shyon: 
      A good choice as well
      08-16
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  • DiAngel
    ·08-15
    TOP
    I won’t buy $UnitedHealth(UNH)$ as I don’t have such deep pocket as Buffett. [Chuckle][Smile].


    I will just be contented with whatever I have and play it safe. [LOL][Happy][Smile][Tongue][Cool][Grin][Chuckle][Bless][Heart]


    @MHh @Universe宇宙 @Wayneqq @melson @rL
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  • koolgal
    ·08-16
    🌟🌟🌟I like $Novo-Nordisk A/S(NVO)$ as the global obesity drug market is experiencing rapid growth and is projected to reach significant figures in the coming years.  Goldman Sachs estimates the market to be worth a massive USD 95 billion by 2030.

    Novo Nordisk's share price is down 40% year todate and a huge 60% in 2024.  It has built a formidable moat around its GLP-1 therapies - notably Ozempic and Wegovy.

    While Novo Nordisk is not quite in the "cigar butt" territory, I believe that it is undervalued and oversold.  Novo Nordisk also pays a good dividend at 3.30% yield and has solid fundamentals, great for dividend seeking investors like me.

    @Tiger_comments @TigerStars @Tiger_SG @CaptainTiger

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  • chiaosiong
    ·08-16
    it depends on your strategy. if you plan to hold every long term like for few years, of course you can go in UNH now. however, if you're just aim for earning fast profit like short-term trading, then UNH is still a no at least technically. unless you have superb trading skills for day trading.
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  • Tiger_comments
    ·09-01
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  • WanEH
    ·08-19
    千万别看巴菲特入仓了就着急跟。 现在的价格明显是情绪带起来的。别忘了 联合健康目前仍然接受着多项联邦调查案。 @Tiramisu2020
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  • White Cat
    ·08-18
    buy more. it's a steal at this price. I have initiated a position in this. there's still a lot of free cash lying around waiting to enter the market. and a 90% rate cut this September
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  • mpeyeoeh
    ·08-18
    option trading is a psychological game. Stick to your plan game and ignore all the noises. execute your win/loss percentage regardless if it move in or go against your direction. Happy Trading
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  • Cadi Poon
    ·08-17
    以前$英偉達(NVDA)$盈利情況下，該股或將維持高位震盪。但有一個風險需要注意：在人工智能領域，兩個最大的泡沫——$Palantir Technologies Inc.(PLTR)$和NVDA——面臨風險。
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  • TimothyX
    ·08-17
    伯克希爾哈撒韋公司在Q2新建倉了16億美元的美國醫療保險巨頭聯合健康，以每股314美元的平均成本收購了503.9萬股。

    不僅僅是巴菲特——頂級全球量化基金Renaissance Technologies、David Tepper的Appaloosa Management和傳奇投資者Michael Burry也蜂擁而至。雖然短期監管和成本風險不容忽視，但公司估值已跌至歷史低位。

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  • 北极篂
    ·08-16
    我觉得UNH（联合健康）这波反弹其实算是情绪驱动多过基本面修复。虽然跳涨了10%，但巴菲特当初的成本还在市场价之上，说明机构大佬也不一定每次都能踩到完美点位。就我来说，现在去追高UNH未必划算，因为医药保险行业的不确定性依然存在，尤其是政策和监管风险。


    如果问我会不会买？我倾向于观望，等它回调到更有吸引力的估值区间再考虑。相反，我更愿意逢低去关注一些被错杀的成长股，比如部分AI硬件链条里估值被压缩的半导体公司，或者消费板块里短期需求疲软但长期趋势向好的企业。


    至于超卖的标的，目前美股不少中型科技股、以及港股的一些互联网公司，确实有点被资金情绪砸过头。如果能挑到基本面没变、只是受短期抛售影响的公司，那才是值得慢慢加仓的机会。
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  • Star in the Sky
    ·08-16
    doesn't mean that Warren Buffet scooped up 1.6 billion worth of shares will cause UNH to fly .. The news might stabilise the share price for a while but the dip will continue after the news dies down.
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  • 黑马1990
    ·08-16
    UNH 我在244建仓，我的理由很简单：大白马龙头严重低估，财报及各种利空消息出尽。否极终会泰来，时间换空间。LuLu 从200多就开始关注，但是还没有等到合适建仓的价格。我还专门去门店看产品，各类产品价格，店里人流量….对于LuLu的品牌溢价，竞争加剧，消费降级，贸易战成本上升…..对我来说LuLu目前所面临的挑战确实不少，如果股价能跌到160左右。或许我会考虑建仓。
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  • Jackosen
    ·08-16
    LLY and UNH are my top choices to buy at sold off periods. These 2 are giants in their respective sectors and great money generating companies. Worth to keep for long term investment. $Eli Lilly(LLY)$
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  • LucasOng
    ·08-16
    If the UNH drop further, I am sure buffet will buy even more. He is deploying his cash. He once said you must be prepared to buy a stock and hold it even if it drop by 50%. Means between 314 -50% he still can buy :)
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  • Rainy777
    ·08-16
    Berkshire does make mistakes and I think UNH is one of them. It needs a strategy and management revamp but Berkshire cant change that with its current stake.
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  • Mrzorro
    ·08-16
    I wish I had money to buy UNH now  [LOL]. I do believe the potential and future of  $UnitedHealth(UNH)$ for long term investment.
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  • Liang888
    ·08-16
    $UNH price looks attractive now, but I’m not buying yet, looking for some pull back after recent waves up.


    Be patient in the market.
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