Buffett buys 5 million shares of UnitedHealth for $1.57 billion to support the company in crisis

Billionaire Warren Buffett through its company Berkshire Hathaway acquired 5 million shares of the American medical conglomerate UnitedHealth Group for about $1.57 billion. About writes Reuters.

Over the past year, UnitedHealth shares have lost almost 40% of their value due to high healthcare costs and changes in government reimbursement programs that have affected the company's insurance and medical divisions.

Despite the short-term problems, the news of Buffett's investment and other large hedge funds buying shares shows that investors see long-term value in UnitedHealth.

At the same time, analysts warn that UnitedHealth's recovery process could be lengthy due to the expected billions in additional medical expenses.

Following the announcement of the deal, the stock rose 13.9% to $309.14, which could be the best one-day gain since October 2008.

Over the past two years, the company has faced a number of challenges: a cyberattack on its technology division, the murder of an insurance executive in December, and a federal investigation into state insurance plans.

In addition to Buffett, other large funds, including Appaloosa Management, Lone Pine Capital, and Two Sigma Investments, have also bought shares in the company.

• December 4, 2024, Brian Thompson, 50-year-old CEO of UnitedHealth, shot near the Hilton Hotel.
• 26-year-old Luigi Mangione, the accused in a deadly attack on Thompson, he said in court in Manhattan his innocence on murder and terrorism charges.