UNH Stock Soars as Berkshire Hathaway Reveals New $1.6 Billion Stake
UNH stock surged by more than 10% in after-hours trading following the news that Warren Buffett’s Berkshire Hathaway has taken a new, significant position in UnitedHealth Group. The reveal came from Berkshire’s latest 13F filing for the second quarter of 2025, which showed the conglomerate had quietly purchased approximately 5 million shares of the healthcare giant, a position valued at roughly $1.6 billion as of the end of June.
This strategic investment marks a notable entry into the healthcare sector for Berkshire and has sparked significant interest among investors and market analysts alike.
A Strategic Play in the Healthcare Sector
The acquisition of UNH stock is a classic Buffett-style move. As a leading player in the U.S. healthcare and insurance market, UnitedHealth Group offers a defensive, stable, and long-term growth opportunity. Its broad portfolio of services, including health insurance and health information technology, makes it a dominant force in a sector with consistently high demand. For a value investor like Buffett, the company’s strong market position and reliable earnings stream likely make it a compelling long-term hold, especially in an uncertain economic climate.
The move into UnitedHealth also comes as Berkshire Hathaway’s overall portfolio value experienced a slight dip to $258 billion in Q2, even as its top five holdings continued to dominate.
Portfolio Shake-Up: What Else Buffett Bought and Sold
The purchase of UNH stock was not the only notable change in Berkshire’s Q2 portfolio. The conglomerate also added to several existing positions, including:
- Chevron: Purchased an additional 3 million shares, bringing its total to around 350 million.
- Lennar & D.R. Horton: Increased stakes in both homebuilders, signaling confidence in the housing sector.
- Constellation Brands & Domino’s Pizza: Added to its holdings in the consumer staples and dining sectors.
On the selling side, Berkshire completely exited its position in T-Mobile and continued to trim its two largest holdings. The company sold 20 million shares of Apple, continuing a trend of divestment that began in 2023, and reduced its stake in Bank of America by 26 million shares.
Analyst Outlook for UNH Stock
Following Berkshire’s investment, market sentiment toward UNH stock has grown increasingly positive. Analysts generally maintain a “Strong Buy” consensus rating for the company, citing its strong fundamentals and continued leadership in the managed care space. Price targets for UnitedHealth Group often suggest double-digit upside potential, with the company’s long-term growth prospects remaining robust due to favorable demographic trends and its integrated business model.
In conclusion, Buffett’s significant new position in UNH stock signals a strong vote of confidence in the company’s future and the broader healthcare sector, offering a compelling case for investors to take a closer look at a stock that has now earned the “Buffett stamp of approval.”