Warren Buffett's Berkshire Hathaway (NYSE:BRK)(NYSE:BRK) disclosed a new stake in UnitedHealth Group (NYSE:UNH) in August, but after an initial rally, the stock has since fallen, putting the position underwater.
Buffett's Berkshire Bets on UNH Stock
A 13F filing from Berkshire Hathaway unveiled the purchase of 5,039,564 UNH shares by the conglomerate in the second quarter, a position that represented one of the largest new buys from the company, then led by Buffett.
The purchase of UnitedHealth shares in the second quarter may have represented an example of Buffett seeing value. The murder of a senior executive, antitrust investigations, and a cyberattack saw shares of the health insurance company trade lower in the early months of 2025.
It is unknown exactly when Berkshire Hathaway bought its UnitedHealth shares, a purchase made in the second quarter and marking the first time the conglomerate had owned shares of the health insurance company in several years.
UnitedHealth stock hit a second-quarter low of $248.88 on May 15 and had a second-quarter high of $606.36.
This means that Berkshire Hathaway bought UNH stock at a price between $248.88 and $606.36 per share. Given Buffett’s often value-oriented approach, it’s more likely shares were bought on the lower side, closer to $248.88.
Based on the 5,039,564 UNH shares purchased by Berkshire Hathaway, the purchase amounts would have been in a range of $1,254,246,688.32 to $3,055,790,027.04 based on the lowest and highest prices for the shares in the second quarter.
With shares trading at $283.80 on Tuesday after quarterly financial results disappointed investors, Berkshire's stake is now worth $1,430,228,263.20.
This means the position is down $141,964,517.88 from the end of the second quarter.
The position is also anywhere from up $175,981,574.88 to down as much as $1,625,561,763.84, depending on when the shares were bought.
This could be a perfect example of looking for value and buying stocks when they trade near lows, rather than chasing stocks when they trade near highs, in a given quarter or year.
What's Next For UNH Stock?
Ahead of quarterly earnings, UNH stock fell Monday after a report indicated the Trump administration will propose that Medicare insurance rates remain unchanged next year.
The news sent shares of multiple health insurance companies lower, as it could mean lower profits for the Medicare segment. Some analysts had been forecasting Medicare rates to go up by 4% to 6% in 2027. In 2026, Medicare rates went up 5.06%.
On Tuesday, UnitedHealth reported earnings per share of $2.11 and revenue of $113.22 billion. Earnings beat analyst estimates, while revenue came in below analyst estimates.
While revenue was up year-over-year and the results were mixed, the company's 2026 outlook sent shares down significantly on Tuesday. The company expects 2026 revenue of $439 billion, trailing the consensus estimate of $454.6 billion.
What's Next For Berkshire Hathaway Stock?
Buffett stepped down as the CEO of Berkshire Hathaway at the end of 2025, ending a multi-decade run leading the company and often times beating the market.
The conglomerate trailed the S&P 500, gaining 11.5% in 2025, versus 16.6% for the index.
New CEO Greg Abel could be looking to make his mark, with plans already in motion to exit Berkshire's struggling position in shares of Kraft Heinz.
Investors will be closely following future disclosures from Berkshire Hathaway to see what Abel's early moves are. The next 13F, due in mid-February, will cover the fourth quarter and show the last transactions made with Buffett in charge.
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