Warren Buffett's firm buys $1.6B in UnitedHealth stock, boosting stock price

An investigation by The Guardian alleged that the company secretly paid nursing homes to prevent or delay transfers of Medicare Advantage patients to hospitals, which saved the company money but harmed patient care. The company’s stock has declined by nearly half in 2025, making it the worst performer in the Dow Jones Industrial Average.

Politico reported on Thursday that both Republican and Democratic lawmakers have sold as much as $1.2 million worth of company stock so far this year while buying stock valued at $950,000. However, Berkshire Hathaway has purchased more than five million shares worth $1.6 billion, according to an August 14 regulatory filling. This news led to a 13% jump in share prices.

UnitedHealth has been attempting to correct its course and reassure investors. The company has made “pricing and operational mistakes” and is shifting to a “tone of change and reform,” newly installed CEO Stephen Hemsley told investors in late July. Since then, the company completed a $3.3 billion acquisition of Amedisys, a home health and hospice provider, and named a new lead independent director and public responsibility committee to monitor financial, regulatory and reputational risks.

In April, UnitedHealth revised its 2025 earnings outlook before suspending its forecast entirely in May over rising care costs. It now projects at least $14.65 in net earnings per share and total annual revenue between $444.5 billion and $448 billion.

“UnitedHealth’s business isn’t necessarily broken, but it is facing some uncertainty in the near term,” he wrote. “And investors haven’t appeared to be willing to hold on amid all these question marks. Berkshire taking a stake in the business may have changed those attitudes, at least for the time being, anyway. The question is whether that will remain the case if in another quarter or two, UnitedHealth still shows that it isn’t out of the woods and that a turnaround isn’t imminent.”