Buffett buys US$1.6 bil UnitedHealth stake, sells T-Mobile
Warren Buffett’s Berkshire Hathaway has taken a bold step into the healthcare sector by buying more than 5 million shares of UnitedHealth, worth about $1.6 billion as of June 2025. The move surprised many investors given the insurer’s recent troubles — but Buffett is known for spotting long-term bargains when others see risk.
The purchase makes UnitedHealth Berkshire’s 18th-largest holding, just behind Amazon and Constellation Brands, according to VerityData. Berkshire’s total stock portfolio is valued at around $300 billion, and there’s speculation that Buffett’s trusted investment managers, Todd Combs or Ted Weschler, may have led the buy, similar to how they handled the Amazon investment in 2019.
UnitedHealth’s Rough Year
UnitedHealth stock has had a tough 2025, falling nearly 50% before this news broke. The company is under investigation by the U.S. Justice Department over Medicare billing practices. It also faced leadership changes — CEO Andrew Witty stepped down in May — and lowered its earnings outlook for the year, missing Wall Street expectations.
Despite the turmoil, Berkshire’s investment sent UnitedHealth shares soaring — up 6% in after-hours trading following the announcement.
Buffett’s View on Healthcare
Buffett has long criticized America’s high healthcare costs, once calling the system a “tapeworm” on the economy. In 2018, he partnered with Jeff Bezos and Jamie Dimon to try to reform employee healthcare, though the venture eventually shut down.
Other Berkshire Moves
UnitedHealth wasn’t Berkshire’s only new buy. The company also added stakes in:
- Nucor (steel manufacturer) – stock jumped nearly 8% after the news
- Lamar Advertising (outdoor advertising)
- Allegion (security products)
- Homebuilders Lennar and D.R. Horton – both rose about 3%
Meanwhile, Berkshire trimmed its holdings in Apple (down 7%) and Bank of America, though both remain among its biggest positions alongside American Express, Coca-Cola, and Chevron.
The Road Ahead for Berkshire
Buffett, turning 95 this month, will step down as CEO at the end of the year, handing leadership to Greg Abel, who will also control capital allocation decisions. Buffett will remain as chairman of the board.
Interestingly, filings also revealed that UnitedHealth drew attention from other major investors last quarter, including Michael Burry and David Tepper’s Appaloosa Management. Currently, UnitedHealth shares trade at a price-to-earnings ratio just under 12, near decade lows — which may explain why Buffett saw it as a value buy.
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