Berkshire Hathaway, led by Warren Buffett, has reported a significant investment in UnitedHealth amidst its declining stock value and ongoing investigation.
Investment in UnitedHealth
Berkshire Hathaway disclosed the purchase of over 5 million shares of UnitedHealth for $1.6 billion, making it the 18th largest holding in Berkshire's $300 billion portfolio. The stock surged 7% on the day the SEC filing was made public.
Company Troubles and Investigation
UnitedHealth has faced significant difficulties, with its stock down 50% year-to-date. The Department of Justice is currently investigating the company regarding its billing of Medicare, complicating its already tarnished reputation. CEO Andrew Witty resigned in May, triggering panic selling.
Other Berkshire Investment Moves
Aside from UnitedHealth, Berkshire has also increased its stakes in Nucor and Lamar Advertising, and returned to investments in homebuilders Lennar and DR Horton. At the same time, Berkshire trimmed its Apple holdings by 7%.
Berkshire's investment in UnitedHealth amidst its struggles reflects a strategy of buying stocks when others are fearful. This event highlights the volatility in the stock market and the readiness of major players to make bets in uncertain times.
