Berkshire's UnitedHealth Bet Highlights Long-Term Confidence Despite Depressed Earnings

On Friday, high-profile investors Michael Burry and Warren Buffett took positions in UnitedHealth Group Inc. (NYSE:UNH). Warren Buffett's fund bought little more than 5 million shares, and Burry disclosed in 13F filings that he purchased call contracts against 350,000 shares of UnitedHealth.

The holdings suggest Burry is betting on a sector turnaround, particularly as Medicare Advantage rates have exceeded expectations for 2026, and UnitedHealth's competitive positioning remains strong despite recent setbacks.

Berkshire Hathaway's stake in UnitedHealth signals confidence but largely reinforces the consensus that earnings are currently depressed. Investors with a five-year horizon could benefit, though most still expect steady annual returns.

Also Read: UnitedHealth: Burry, Buffett, Tepper Go Long As Halvorsen Exits

Bank of America Securities (BofA) remains bullish, projecting earnings recovery by 2027, which could drive both upside in profits and valuation multiples.

Analyst Kevin Fischbeck ...