Mark Cuban Says Berkshire Should Reconsider Insurance Bets: 'I Hate To Say This'

Billionaire Mark Cuban reiterated his criticism of the practices of major insurance companies, urging investors to reconsider their insurance investments.

Cuban took to X on Sunday, to out the big insurance companies for shifting the risk to independent physicians, pharmacists, and patients, who are unable to fight back due to financial constraints.

Cuban even mentioned Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK), the conglomerate previously led by legendary investor Warren Buffett, and urged them to reassess their healthcare insurance investments. He emphasized that if the insurance stockholders start withdrawing their investments and move their IRAs and savings elsewhere, it could lead to a significant change in the industry.

“I hate to say this because I love Warren Buffett ( I know he retired ), but Berkshire Hathaway needs to reconsider their healthcare insurance investments,” wrote Cuban.

He also hinted at the possibility of the market forcing these insurance companies to divest if the Department of Justice fails to take action against them.

Buffett's Insurance Play

Cuban’s call to action comes at a time when the insurance industry is under scrutiny. Just last month, the Trump administration proposed lower-than-expected Medicare insurer rates, leading to a significant drop in the stock prices of major health insurers like UnitedHealth Group Inc. (NYSE:UNH), Humana Inc. (NYSE:HUM), and CVS Health Corp. (NYSE:CVS).

On the other hand, Warren Buffett has long been a proponent of the insurance industry, crediting it as the engine driving the company’s success. Berkshire's insurance float grew from $39 million in 1970 to $91.6 billion by 2016, giving Buffett the capital base that helped build the conglomerate through acquisitions and investments.

The company has made several significant investments in the insurance sector, including a substantial position in Chubb Ltd. (NYSE:CB), which has yielded impressive returns. Over the past year, the stock surged 13.01%.

Meanwhile, Cuban’s criticism of the exploitative practices of big insurers isn’t new. The Shark Tank star had previously said that he supports PBM reform but argued that major PBMs, owned by large insurers, are too big to care and profit by charging every stakeholder, creating an inefficient system with no incentive to control costs.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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