Why Warren Buffett and Hedge Funds Are Betting on UnitedHealth Stock (UNH)
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Berkshire and Burry Are Betting on UnitedHealth's Rebound
Warren Buffett's Berkshire Hathaway (BRK.B) disclosed a $1.57 billion investment in UnitedHealth, acquiring roughly 5 million shares, as revealed in its Q2 2025 13F filing. This marks Berkshire's first stake in the company since selling out in 2010, when Buffett exited amid a broader pullback from health insurers.
Meanwhile, Burry's Scion Asset Management revealed a combination of call options tied to 350,000 UnitedHealth shares and a direct holding of about 20,000 shares, valued at $6 million.
Burry's position is notable because he is betting on a rebound in a stock that has fallen nearly 46% so far this year. The move follows better-than-expected Medicare Advantage rates for 2026, and UnitedHealth's competitive positioning remains solid despite recent turbulence.
Analysts See Growth Potential Despite Challenges
These investments come despite a challenging year for UnitedHealth, marked by surging medical costs, a Justice Department probe into Medicare billing, and a cyberattack.
Q2 earnings also disappointed, with profits falling sharply due to higher-than-expected medical costs across both Medicare Advantage and commercial plans. The company now anticipates an additional $6.5 billion in medical costs this year, with effects likely extending into 2026.
On the positive side, UnitedHealth maintains that its long-term growth plan is on track, focusing on AI tools and improving patient care. Analysts see roughly 15% upside from current levels, supported by the company's steps to address operational challenges and an updated financial outlook.
average UnitedHealth stock price target implies a 15.03% upside potential.
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