Warren Buffett’s Berkshire Hathaway has made a significant investment in UnitedHealth Group by acquiring 5 million shares, valued at approximately $1.6 billion. This stake, disclosed in a recent regulatory filing, positions UnitedHealth as the 18th-largest equity holding in Berkshire’s portfolio. The announcement triggered a substantial positive response from the market, with UnitedHealth’s stock jumping about 7% in after-hours trading and surging further to over 12% premarket. This move marks Berkshire Hathaway’s return to the healthcare insurer’s capital after having previously divested its stake in 2010 during a broader retreat from health insurance companies.

UnitedHealth is currently navigating a challenging environment marked by soaring medical costs, extensive federal investigations—including a probe into Medicare billing practices—and the fallout from the murder of a top executive. Additionally, the company suffered a cyberattack last year, compounding its difficulties. These adversities have caused a sharp decline in UnitedHealth’s stock price, which has fallen nearly 46% so far in 2025. The health insurer also recently issued a much lower profit forecast, signaling ongoing financial strain with billions in additional costs expected in the coming quarters. Despite these headwinds, Berkshire’s acquisition suggests confidence in UnitedHealth’s ability to rebound and remain an industry leader.

While building this new position in UnitedHealth, Berkshire Hathaway simultaneously rebalanced other parts of its portfolio. The conglomerate sold 20 million shares of Apple, reducing its stake but leaving the tech giant as its largest holding. It also significantly trimmed its holdings in Bank of America and fully exited its $1 billion investment in T-Mobile US. On the flip side, Berkshire increased stakes in companies such as Nucor, Lennar, Lamar Advertising, and Allegion, while cutting down its stake in homebuilder D.R. Horton. These moves reveal Berkshire’s ongoing strategy to optimize investments across diverse sectors, balancing exposure to technology, finance, healthcare, and industrial companies.

Notably, the $1.6 billion UnitedHealth stake constitutes less than one-hundredth of Berkshire Hathaway's overall equity portfolio, which is valued around $300 billion. It is believed that this purchase may have been executed by Buffett’s investment managers Todd Combs and Ted Weschler rather than Buffett himself, reflecting their growing influence in portfolio decisions. This strategic repositioning in UnitedHealth signifies a noteworthy pivot into the healthcare sector for Berkshire, an area where Buffett had historically been cautious, reflecting both opportunism in valuation and a calculated bet on the long-term prospects of the insurer amid a turbulent healthcare landscape.