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Here's how much Warren Buffett is up on his UnitedHealth stock bet
Finboldยท2025-09-12 08:31

Core Insights - UnitedHealth Group Inc. has become a significant investment for Berkshire Hathaway, with the company acquiring over 5 million shares at an average price of $311.97, totaling $1.57 billion [1] - Following the acquisition, UnitedHealth's stock price increased to $353.61, representing a 13.35% rise from the purchase price, resulting in a paper gain of approximately $210 million for Berkshire [2] - The stock has surged more than 30% since the disclosure of Berkshire's investment, indicating a strong market reaction often referred to as the "Buffett effect" [3] Investment Rationale - The stock was previously trading at $271.49 before Berkshire's investment was revealed, highlighting its significant appreciation post-announcement [3] - UnitedHealth's stock had reached a high of $621.24 in the past year before experiencing a nearly 60% decline, suggesting that Berkshire viewed the stock as undervalued based on its long-term fundamentals [5] - The investment aligns with Buffett's strategy of acquiring market leaders with stable cash flows at a discount, rather than a broad bet on healthcare defensiveness [6]