MINNEAPOLIS — UnitedHealth Group’s shares soared 10% on Friday, August 15, 2025, reaching $301.01 in early trading, following news that Warren Buffett’s Berkshire Hathaway acquired a stake in the embattled healthcare giant. The investment, disclosed late Thursday in a filing detailing shifts in Berkshire’s $268 billion stock portfolio for the second quarter, marks a significant vote of confidence for a company grappling with multiple headwinds, as reported by the Financial Times.
UnitedHealth, one of the largest U.S. healthcare providers, has faced a turbulent year, with its stock plummeting 47% in 2025 before Friday’s rally, making it one of the S&P 500’s worst performers. The Minnesota-based firm is navigating a profit squeeze driven by rising patient claims in its health insurance division. Additionally, a criminal probe into its Medicare billing program threatens a potential $1.6 billion settlement, adding to the company’s woes. The turmoil culminated in the May departure of CEO Andrew Whitty, with former chief Stephen Hemsley stepping back into the role.
Morningstar analysts noted on Friday that “investors appeared to appreciate the vote of confidence from Berkshire Hathaway,” particularly given the “significant uncertainty” surrounding UnitedHealth and the broader managed-care industry. While it remains unclear whether Buffett himself or one of his two deputies spearheaded the investment, Berkshire’s backing is a coveted endorsement, especially for companies in distress.
The stake comes at a pivotal moment for UnitedHealth, which has been working to stabilize its operations amid regulatory and financial pressures. Berkshire’s move could signal optimism about the company’s long-term prospects, despite its current challenges. The investment also aligns with Buffett’s history of betting on fundamentally strong companies facing temporary setbacks. For now, the market’s response suggests renewed investor confidence, though analysts caution that UnitedHealth’s path to recovery remains complex, with ongoing scrutiny of its Medicare practices and competitive pressures in the healthcare sector.
As UnitedHealth works to regain its footing, Friday’s stock surge underscores the weight of Berkshire’s involvement, offering a glimmer of hope for a company under siege. Investors will be watching closely to see if this marks the beginning of a broader turnaround.
Source: Financial Times
