Warren Buffett Buys UnitedHealth Shares Worth 1.6 Billion Dollars

Warren Buffett buys UnitedHealth shares worth 1.6 billion dollars in a move that has caught Wall Street’s attention. The legendary investor, through his company Berkshire Hathaway Inc., quietly acquired 5 million shares in the U.S. health insurance giant — a bold bet despite the company’s recent turbulence.

According to a regulatory filing released Thursday, Berkshire purchased 5 million shares of UnitedHealth during the second quarter of 2025. The news sent UnitedHealth’s stock price surging as much as 9.6% in after-hours trading, as Wall Street interpreted the purchase as a vote of confidence from one of the world’s most respected investors.
Source: Bloomberg

UnitedHealth’s Challenges Didn’t Deter Buffett

Buffett’s entry into UnitedHealth comes at a time when the company is facing multiple headwinds:

• In 2024, senior executive Brian Thompson was tragically shot and killed in Manhattan — a case that shocked the corporate world.
• Rising medical costs have been putting pressure on profit margins across the U.S. health insurance sector.
• Earlier this year, UnitedHealth reported quarterly earnings that fell short of Wall Street expectations for the first time in over a decade, triggering a sharp drop in its share price.
• Leadership changes are underway, with a new CEO already in place and a new CFO expected to take over soon.

While many investors might see these issues as red flags, Buffett’s move suggests he believes the company’s fundamentals — and long-term growth prospects — outweigh the current volatility.

Strategic Portfolio Shifts

Alongside the UnitedHealth purchase, Berkshire Hathaway made several other notable changes to its holdings in Q2:

• Exited T-Mobile US Inc. entirely, selling its $1 billion stake and walking away from the telecom sector.
• Reduced Apple holdings by 20 million shares. Despite this cut, Apple remains Berkshire’s largest equity position by market value. The value of its Apple stake fell by roughly $9.2 billion in the three months ending June 30.
• Trimmed Bank of America Corp. ownership by 26 million shares, lowering its stake to about 8%. Buffett began reducing his exposure to the bank in 2024, though he has never explained the reasoning behind the move.

Other Investments: Winners and Woes

Not every part of Berkshire’s portfolio has been a success story lately:

• Kraft Heinz Co., a long-time Berkshire holding, continues to be a headache. Earlier this year, the company recorded a $3.8 billion impairment loss on its Kraft Heinz investment. Berkshire did not change its position in the food giant during the second quarter.
• The conglomerate increased its stake in Lennar Corp., a leading U.S. homebuilder, while reducing its shares in D.R. Horton Inc.
• Berkshire also added more shares of Nucor Corp., a major U.S. steel producer.

Some of these moves were not disclosed in previous filings, as Berkshire had requested confidential treatment from the U.S. Securities and Exchange Commission (SEC) — a common practice when large investors want to keep certain trades under wraps until later.

What This Means for Investors

Buffett’s decision to enter UnitedHealth in the middle of a rough patch could be read as a classic Buffett play — buying a strong business at a moment when the market is pessimistic about its future.

The simultaneous exit from T-Mobile and reduction in Apple and Bank of America stakes indicate a portfolio rebalancing strategy. By trimming positions in mature or fully valued assets, Berkshire can free up capital for opportunities it believes are undervalued or positioned for stronger growth in the coming years.

For everyday investors, the message is familiar:

“Be fearful when others are greedy, and be greedy when others are fearful.”