Warren Buffett just made a billion-dollar bet on a struggling giant. His firm, Berkshire Hathaway, has taken a significant position in UnitedHealth, a health insurer facing serious headwinds, signaling confidence in a potential turnaround. This move has already jolted the market, and it’s worth dissecting for investors seeking value plays.
According to CNBC, Berkshire Hathaway disclosed its new stake in UnitedHealth, acquiring over 5 million shares valued at roughly $1.6 billion by the end of June 2025, a move that has sparked intrigue given the insurer’s challenges and Buffett’s storied approach to bargain hunting.
This investment isn’t a small footnote—it’s Berkshire’s 18th largest holding, trailing positions in Amazon and Constellation Brands, according to VerityData. With Berkshire’s total equity portfolio sitting at around $300 billion, this $1.6 billion stake represents a meaningful commitment. It’s a classic Buffett play: buy low when others are fearful.
UnitedHealth, the largest private health insurer in the U.S., has been under fire. Its stock had plummeted nearly 50% in 2025 through Thursday’s close before Berkshire’s filing, battered by public criticism over soaring healthcare costs and a Justice Department probe into its Medicare billing practices.
The hits kept coming for UnitedHealth earlier this year. In May 2025, the company scrapped its annual earnings outlook, and CEO Andrew Witty resigned amid the turmoil. Then, in July 2025, a revised 2025 forecast fell far short of Wall Street’s expectations, further hammering its share price.
Yet, Berkshire’s entry flipped the script overnight. UnitedHealth’s stock surged 6% in extended trading following the disclosure, a clear sign that Buffett’s vote of confidence carries weight with investors. Could this be the bottom for a beaten-down giant?
Buffett, who turns 95 in August 2025, has long been critical of the U.S. healthcare system. He’s famously called it a “tapeworm” on the economy due to its exorbitant costs. This makes his investment in UnitedHealth all the more surprising—and intriguing.
Back in 2018, Buffett teamed up with Jeff Bezos and Jamie Dimon to launch a joint venture aimed at improving healthcare for employees, though it ultimately shuttered. Now, with this UnitedHealth stake, he’s wading back into the sector, betting on a specific player rather than systemic reform. It’s a pivot worth watching.
Meanwhile, other savvy investors like Michael Burry and David Tepper of Appaloosa Management also scooped up UnitedHealth shares last quarter. With the stock trading at a price-earnings ratio of just under 12—near its lowest in over a decade—the valuation screams “bargain” for those with a contrarian streak.
Berkshire wasn’t just active with UnitedHealth. The firm also picked up smaller stakes in Nucor, a steel manufacturer, Lamar Advertising, Allegion, and homebuilders Lennar and DR Horton, with Nucor’s shares jumping nearly 8% in after-hours trading and Lennar and DR Horton each gaining about 3%. These moves suggest a diversified hunt for value.
On the flip side, Berkshire trimmed its holdings in Bank of America and Apple, cutting its Apple stake by roughly 7%. Its largest positions remain Apple, American Express, Bank of America, Coca-Cola, and Chevron, showcasing a blend of tech, finance, and energy exposure. Balance is key in Buffett’s world.
As Buffett prepares to step down as CEO by the end of 2025, with Greg Abel taking the reins while Buffett stays on as chairman, questions linger about who will steer the equity portfolio. Buffett has hinted that Abel will oversee all capital allocation, but the exact future of stock-picking at Berkshire remains unclear.
For investors, this UnitedHealth stake offers a lesson in contrarian thinking. When a stock is down 50% and mired in controversy, most flee—but Buffett often steps in, betting on long-term recovery. His track record suggests there’s method to this madness.
Consider this an invitation to hunt for value in your portfolio. Look at UnitedHealth’s low P/E ratio and ask: Is the market overreacting to temporary woes? While risks remain—especially with regulatory scrutiny—value plays like this can reward the patient.