Buffett’s Berkshire Hathaway Invests $1.57 Billion in UnitedHealth Group
Under the leadership of investment mogul Warren Buffett, Berkshire Hathaway has made headlines by investing approximately $1.57 billion in the American health insurance giant UnitedHealth Group. SEC filings reveal that as of the end of June, Berkshire held 5.04 million shares of UnitedHealth stock. Following the announcement, the company’s stock price surged 12.94% in after-hours trading.
This investment comes after UnitedHealth’s stock has plummeted 46% this year, as the company faces multiple pressures including rising healthcare costs, a Department of Justice investigation, cyberattacks, and the recent murder of an executive. Buffett has previously criticized the high cost of healthcare in the U.S. as a “tapeworm” on economic growth.
In addition to increasing its stake in UnitedHealth, Berkshire also expanded its investments in homebuilders DR Horton and Lennar during the second quarter, and initiated new positions in safety product supplier Allegion, outdoor advertiser Lamar Advertising, and steel manufacturer Nucor.
However, Berkshire simultaneously reduced its holdings in several large positions, including selling 20 million shares of Apple (reducing its holdings to 280 million shares) and shares of Bank of America, while completely exiting its position in T-Mobile. Despite these new investments, Berkshire net sold approximately $3 billion in stocks during the April to June period, raising its cash reserves to $344.1 billion.
Buffett’s Berkshire net sold $3 billion in stocks during the second quarter, reducing its stakes in Apple and Bank of America, while placing a $1.57 billion bet on UnitedHealth.
