When Warren Buffett makes a move, I pay attention.

Late last week, Berkshire Hathaway revealed a brand-new stake in UnitedHealth Group (UNH).

Within hours, the stock went vertical.

And it hasn’t slowed down either… adding another 2% today as I write this.

So why did the greatest value investor alive just dive into a stock that’s been this year’s biggest loser?

The Dow’s Worst Performer Becomes Buffett’s New Darling

UnitedHealth’s 2025 has been nothing short of brutal.

Down 50% for the year before Buffett stepped in, the company was the dog of the Dow.

The laundry list of problems is long:

• A massive earnings miss in April, followed by a guidance cut.

• A surprise CEO resignation in May and a suspended annual forecast.

• And then the bombshell: reports of a Department of Justice investigation into possible Medicare fraud.

Investors stampeded for the exits. Shares cratered 22% in one day, then another 28% after the DOJ story broke.

It was pure panic.

But Buffett has built his career on buying when others are running scared.

And that’s exactly what he just did.

Here’s Why Buffett Bought the Dip

Here’s the thing: underneath the ugly headlines, UnitedHealth is still a healthcare monster.

Last year it generated $400 billion in revenue and $15 billion in profit.

It runs the nation’s largest health insurer (UnitedHealthcare) and owns Optum, a sprawling data and services business.

Its Medicare Advantage arm covers nearly one in three Americans on the program.

And while the DOJ investigation sounds scary, seasoned investors know how this usually plays out.

Healthcare companies get probed, they pay big fines, and life goes on.

It’s rarely a death sentence.

As one fund manager put it: “Healthcare companies get into trouble all the time… It rarely destroys them.”

Buffett also knows insurance better than almost anyone alive.

GEICO has been part of Berkshire for decades.

He understands that headlines don’t always equal permanent damage.

The stock’s valuation likely sealed the deal.

Even after its rally, UnitedHealth trades at just 13 times earnings which is well below competitors like Humana (22x) and Cigna (16x). 

For a dominant player with deep cash flow, that’s bargain territory.

Buffett’s Broader Moves

UnitedHealth wasn’t the only new position Berkshire disclosed.

Berkshire also revealed stakes in homebuilders Lennar and D.R. Horton, steelmaker Nucor, billboard operator Lamar Advertising, and lock manufacturer Allegion.

Berkshire even trimmed its massive Apple stake, though it remains by far its largest holding.

What ties these moves together is Buffett’s classic playbook: buy durable businesses during periods of weakness, hold them for years, and let the market eventually recognize their value.

Here’s Where You Can Track the “Smart Money”

Buffett’s UnitedHealth play is the big headline, but he’s not the only game in town.

Every quarter, hedge fund legends like Bill Ackman, Michael Burry, Steven Cohen, and Dan Loeb reveal their moves in 13F filings.

If you want to track what the smartest money on Wall Street is buying, I recommend WhaleWisdom.com.

It’s the best free resource to dig into hedge fund portfolios, see what’s changed, and spot trends before they hit the headlines.

Buffett’s bet on UnitedHealth is a reminder of one of his oldest lessons: be greedy when others are fearful.

Right now, fear is everywhere in healthcare.

Buffett just showed us he’s happy to eat while others are running from the table.