Warren Buffett's Berkshire Hathaway reveals new stake in beleaguered insurer UnitedHealth

In this articleBRK.A your favorite stocksCREATE FREE ACCOUNTPeople watch as Berkshire Hathaway chairman Warren Buffett is seen on a screen speaking at the Berkshire Hathaway annual holders' meeting in Omaha, Nebraska, on May 3, 2025.Brendan McDermid | ReutersWarren Buffett's Berkshire Hathaway revealed a new stake in troubled insurer UnitedHealth last quarter, according to a regulatory filing, a surprising buy because of the company's current reputation, but perhaps not considering his history of bargain .The Omaha-based conglomerate bought more than 5 million s in the health care firm for a stake worth $1.6 billion at the end of June

The stake puts it as the 18th biggest position in the Berkshire portfolio behind Amazon and Constellation Brands, according to VerityData.Berkshire's equity portfolio is worth $300 billion, so it is possible that Buffett's two lieutenants Todd Combs and Ted Weschler were more responsible for this purchase rather than the "Oracle of Omaha" himself

Buffett said one of his investment managers was behind the Amazon investment in 2019.The insurer's stock shot up 6% in ext trading ing Berkshire's disclosure.Stock Chart IconStock chart iconUnitedHealth year to dates of UnitedHealth were down nearly 50% for 2025 through Thursday's close before Buffett's filing

The largest private health insurer has become the face of a public blowback in this country against the rising costs of health care

UnitedHealth is currently facing a Justice Department investigation into its Medicare billing practices.In May, the company pulled its annual earnings outlook and CEO Andrew Witty stepped down

Last month, UnitedHealth gave a new 2025 outlook that was well short of Wall Street estimates, hitting the stock further.Buffett, who's turning 95 this month, has been critical of the healthcare system in the U.S., calling it a "tapeworm" on the economy due to its high costs

In fact, the conglomerate also took small stakes in steel manufacturer Nucor, outdoor advertising company Lamar Advertising and security firm Allegion

Berkshire's largest positions as of the end of the second quarter were Apple, American Express, Bank of America, Coca-Cola and Chevron.The legendary investor is stepping down as Berkshire CEO at the end of the year, handing over the reins to Greg Abel

Buffett will stay on as chairman of the board

It's still un who will be in charge of Berkshire's gigantic equity portfolio, though Buffett has alluded that Abel will be making all capital allocation decisions at the conglomerate.UnitedHealth attracted other buyers last quarter, according to filings, including Michael Burry and Appaloosa Management's David Tepper. s of the insurer are trading at a price-earnings ratio of just under 12, near its lowest in more than a decade.There was speculation regarding a mystery stock Buffett was buying as Berkshire had asked for permission to keep certain holdings secret last quarter

It turns out the secret stock was a combination of multiple positions and ly the stakes added in DR Horton, Nucor and Lennar "A" s.