Warren Buffett's Next Big Buy? Why This Beaten-Down Blue Chip Stock Fits His Playbook Perfectly.

What stands out here is Warren Buffett has a lot of money burning a hole in his pocket

On the other hand, The blem is that Buffett can't find many stocks to buy that meet his stringent investment criteria, in today's market environment

However, I think there's one beaten-down blue chip stock that fits his playbook perfectly, considering recent developments

On the other hand, Image source: The Motley Fool

A Buffett understands Buffett has stated on multiple occasions, in various ways, that he will only invest in a that he thoroughly understands, in this volatile climate

Furthermore, In his 1996 letter to Berkshire Hathaway holders, he wrote: "You don't have to be an expert on every company, or even many

You only have to be able to evaluate companies within your circle of competence. " bably no is within Buffett's circle of competence more than insurance

Berkshire generates a significant portion of its revenue from its perty and casualty, in today's market environment

But the core principles of running an insurance are the same regardless of what type of insurance it is (fascinating analysis)

At the same time, The key to success is to effectively evaluate risk and charge premiums that cover that risk while making a fit (this bears monitoring)

I don't doubt that Buffett knows its quite well (remarkable data)

Furthermore, The company dered lower-than-expected results in the first quarter

Furthermore, It initially cut full-year guidance and then withdrew the guidance altogether

On the other hand, However, I suspect that Buffett would still find UnitedHealth's financials appealing

Moreover, Buffett has talked the importance of return on equity (ROE) in the past

However, UnitedHealth Group's ROE over the past 12 months was 22

I think Buffett would focus on UnitedHealth's hard numbers more than he would Wall Street's expectations

A price Buffett almost certainly s Why hasn't Buffett put more of Berkshire's massive cash stockpile to work

He can't find many stocks with attractive valuations

But UnitedHealth Group has a price Buffett almost certainly s

Furthermore, The healthcare stock trades at roughly 12 times trailing 12-month earnings

UNH PE Ratio data by YCharts Of course, Buffett focuses on future earnings potential

Additionally, Could he be worried that UnitedHealth Group's fits will continue to all (something worth watching)

The company's primary issue is that costs for some of its Medicare Advantage plans were higher than expected

Buffett knows that insurers can easily address these kinds of blems in the next year by increasing premiums

Nevertheless, Is Buffett buying UnitedHealth Group stock

I also don't know if Buffett is buying UnitedHealth Group stock

He could be content to sit on Berkshire's cash and leave it to Greg Abel to make any big moves after Buffett steps down as CEO at the beginning of next year

What I do know, though, is that UnitedHealth Group fits Buffett's playbook

And that playbook has been enormously successful through the years (this bears monitoring)

Investors wanting to emulate Buffett might want to consider buying s of the beaten-down blue chip stock while it's a bargain -- whether or not the "Oracle of Omaha" buys it himself.