So it was no surprise when UnitedHealth Group Inc. watched its stock price soar upon hearing the announcement. Berkshire Hathaway, the investment firm headed by Warren Buffett, has taken a stake in the health care behemoth. And by our math, UnitedHealth’s shares have almost been cut in half since the beginning of 2025. They had just closed at a low point right before this news dropped.
Even prior to Buffett’s unexpected filing, UnitedHealth had gone through a string of bad news events that had left investors concerned about its waning stock price. In May the company pulled its annual earnings forecast, sending investors into a panic. CEO Andrew Witty’s announcement of his resignation during the same month only added to that uncertainty. This sudden leadership change and void of direction left the investment world – and non-investors alike – worried about where the company was headed.
UnitedHealth offered a long-term profit forecast for 2025 last month, but it was lower than what Wall Street analysts were expecting. This grim outlook further increased alarm over the company’s prospects in the increasingly cutthroat oil-exportation business.
In spite of these disappointments, news of Berkshire Hathaway’s increased investment has sent UnitedHealth shares soaring. George Hill, a health care analyst at Deutsche Bank, explained what this means in light of Buffett’s decision.
“The move by Berkshire represents a big vote of confidence in UNH and likely could provide a near-term trading floor for most of the MCO space and, given Berkshire’s investment track record, could serve as a near-term bottom and rallying point for other investors that the space is safe to invest in again.” – George Hill, Deutsche Bank
Investors seem pleased by this endorsement. UnitedHealth shares have since rebounded dramatically from the initial plunge following the announcement. That recent bounce indicates that investors think the company’s issues could be temporary. With solid backing from a well-known and trusted investor such as Berkshire Hathaway, it’s able to further entrench its position in an increasingly competitive health care marketplace.
As the market continues to absorb this news, analysts will be watching UnitedHealth’s performance in the next few months very closely. The company is expected to face ongoing scrutiny as it navigates through its leadership transition and works to regain investor confidence.