UnitedHealth Group stock shot up more than 13% on August 15, 2025, after Berkshire Hathaway revealed it had purchased over 5 million shares worth around $1.57 billion as of June 30. That move gave fresh hope to investors who believe the insurer can rebound under its new leadership.
Behind the surge is Buffett’s signature vote of confidence. It revived sentiment for a company that has stumbled through rising healthcare costs, tightening government reimbursements, cybersecurity breaches, and a high-profile executive’s murder last December.
While the recovery may be gradual, analysts see his stake as a sign the market may be too pessimistic.
Deep Wounds, Long Road Ahead
UnitedHealth’s stock is still reeling. It remains the underperformer on the Dow Jones Industrial Average, down nearly 46% this year. Most recently, the company forecast full-year earnings that fell short of expectations and missed Q2 estimates, rare missteps for a firm known for steady earnings growth.
Its shares now trade at 15.8 times forward earnings, well below the five-year average of 19. That valuation gap highlights how battered it still is.
Leadership Shuffle and Lingering Challenges
In May, CEO Andrew Witty stepped down unexpectedly amid mounting pressures. His successor, Stephen Hemsley, returned to lead after having previously steered UnitedHealth from 2006 to 2017.
Meanwhile, the company faces serious investigations both civil and criminal over its Medicare Advantage billing practices. It is also grappling with escalating medical costs and fallout from a cyberattack that disrupted vital technology infrastructure.
Buffett’s Touch: A Signal of Long-Term Faith
This investment follows Warren Buffett’s playbook, buying undervalued firms when they are facing headwinds and holding for the long game. It echoes past moves like stakes in Goldman Sachs during the 2008 crisis.
Morningstar’s Julie Utterback summed up the mood: despite lingering uncertainties, Buffett clearly believes the market’s pessimism is overdone.
James Harlow of Novare Capital agreed, noting that management needs to win back investor trust and return to its once-reliable “beat-and-raise” routine.
Broader Market Ripples
UnitedHealth’s rebound helped lift the Dow to a new intraday high, even as other insurers such as Centene and Molina posted modest gains.
All told, this infusion of capital and confidence may not solve UnitedHealth’s challenges overnight. But it signals that even in turbulent times, legendary investors still see long-term value where others see only risk.
