Warren Buffett Making Big Moves!
$UnitedHealth(UNH)$ I would never have expected this. Warren Buffett just added about 5 million shares to UnitedHealth Group to bring his stakes’ worth to US$1.6 billion.
We all remember what happened to its ex-CEO, Brian Thompson, and the social media firestorm that came with it.
But Warren Buffett might have seen something worth considering.
Firstly, UnitedHealth’s valuation is very cheap now. It is trading at a price-to-earnings ratio of 12.9 times compared to its historical average of 26.2 times.
Share price has also dropped to a low of US$234 in July 2025, before news of Buffett’s purchase of the company’s share sent the stock flying to US$304 recently.
Secondly, despite the social media firestorm, UnitedHealth’s revenue did grow by 9.8% and 12.9% in 1Q and 2Q 2025 respectively.
However, profits are down by almost 20% in 2Q 2025.
Thirdly, UnitedHealth is one of the biggest healthcare insurance players in the U.S.
This fulfills Buffett’s three main criteria of:
1.Bargain valuation
2.Strong track record
3.Monopoly position in the market
I guess UnitedHealth caught a lucky break from Warren Buffett’s announcement of the investment.
Share price is up by 30% from its recent low.
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