Shares of UnitedHealth Group soared on Friday, August 15, 2025, as investors reacted to the news that Warren Buffett’s Berkshire Hathaway had purchased a significant stake in the health insurance giant. The move, disclosed in a regulatory filing, sent ripples through the financial world and provided a much-needed boost to a company that has faced months of turmoil and scrutiny.
Berkshire Hathaway revealed it had acquired around 5 million shares of UnitedHealth Group during the previous quarter, a stake valued at approximately $1.6 billion, according to filings with the Securities and Exchange Commission. This investment, coming from one of Wall Street’s most respected names, seemed to inject fresh confidence into UnitedHealth’s battered stock. The company’s shares ended the day up 12%, marking their best daily performance since March 2020 and helping to propel the Dow Jones Industrial Average to an all-time intraday high, as reported by Investopedia and other financial outlets.
UnitedHealth Group, often seen as a bellwether for the health care industry, has been under considerable pressure throughout 2025. According to The Wall Street Journal, the company has been the subject of both federal criminal and civil investigations, particularly focused on its Medicare business. The Department of Justice is examining UnitedHealth’s Medicare Advantage billing practices, specifically how the company records diagnoses that result in extra payments from the government. These private Medicare Advantage plans, which cover more than 8 million Americans aged 65 and over, have become a major source of revenue for UnitedHealth, but also a lightning rod for regulatory attention.
The scrutiny intensified earlier this year when The Wall Street Journal reported that federal officials had launched a civil fraud investigation into the company’s billing practices. The probe reportedly zeroed in on the use of doctors and nurses to gather diagnoses that could bolster payments, a practice that has drawn criticism from some lawmakers and patient advocates who argue it may lead to overbilling. UnitedHealth has said it is cooperating with the investigation and has proactively reached out to the Department of Justice after reviewing media reports about the probes.
The company’s troubles have not been limited to regulatory challenges. In December 2024, UnitedHealthcare CEO Brian Thompson was tragically shot and killed in midtown Manhattan on his way to the company’s annual investor meeting. The incident, which led to the arrest of suspect Luigi Mangione, sent shockwaves through the organization and contributed to a period of instability at the top. In May 2025, then-CEO Andrew Witty resigned, and the company withdrew its annual earnings outlook, citing higher-than-expected medical costs from new Medicare Advantage members.
As CNBC noted, UnitedHealth’s stock had been in freefall for much of 2025, losing nearly half its value through August 14. The company’s decision in April to cut its forecast due to a spike in health care utilization, followed by a July outlook that fell well short of Wall Street’s expectations, only added to investor anxiety. The stock had bottomed at the start of August, but the announcement of Berkshire Hathaway’s investment marked a clear turning point.
The rally in UnitedHealth shares was not just a matter of sentiment. Technical analysts observed that the stock had broken out above a steep downtrend line extending back to its April peak, signaling a shift in momentum. According to Investopedia, the relative strength index (RSI) for UnitedHealth moved back above its neutral threshold, indicating accelerating buying interest. Key resistance levels for the stock are now identified at around $325, $380, and $440, while a key zone of support lies between $250 and $235—areas that investors and traders will be watching closely in the coming weeks.
The significance of Berkshire Hathaway’s move was not lost on market watchers. George Hill, a health-care analyst at Deutsche Bank, wrote in a note to clients, “The move by Berkshire represents a big vote of confidence in UNH and likely could provide a near-term trading floor for most of the MCO space and, given Berkshire’s investment track record, could serve as a near-term bottom and rallying point for other investors that the space is safe to invest in again.” Hill’s comments echoed a broader market sentiment that Buffett’s involvement could stabilize not just UnitedHealth, but also the managed-care sector more broadly.
It wasn’t just Buffett who saw opportunity in UnitedHealth. The “Big Short” investor Michael Burry and Appaloosa Management’s David Tepper also disclosed sizable stakes in the company, according to SEC filings made public on August 14, 2025. Their bets, coming at a time of intense scrutiny and falling stock prices, suggest that some of Wall Street’s most prominent figures believe UnitedHealth’s troubles may be overblown or at least priced into the shares.
UnitedHealth’s business is vast and complex, encompassing not only its core insurance operations but also the Optum division, which provides care and technology support. The company is the largest private health insurer in the United States and plays a pivotal role in the administration of Medicare Advantage plans. This scale has made UnitedHealth both an industry leader and a target for critics who blame rising health care costs on large insurers and their business practices.
Despite the recent rally, UnitedHealth’s challenges are far from over. The federal investigations into its Medicare billing practices remain ongoing, and any adverse findings could lead to significant financial penalties or further regulatory restrictions. The company’s leadership has been in flux, and it remains to be seen whether new management can restore stability and confidence over the long term. Furthermore, the broader debate over health care costs in America continues to cast a shadow over the sector, with politicians and patients alike demanding greater transparency and affordability.
For now, though, UnitedHealth’s investors have reason to breathe a little easier. The endorsement from Warren Buffett and other high-profile investors has provided a much-needed shot in the arm, both literally and figuratively. The surge in UnitedHealth’s stock price, the best single-day performance in over five years, has not only buoyed the company but also helped lift the entire market to new heights.
As the dust settles, all eyes will remain on UnitedHealth—its leadership, its legal battles, and its ability to navigate the shifting landscape of American health care. With Buffett’s backing, at least for now, the company seems to have regained its footing, but the road ahead is sure to be closely watched by investors, regulators, and patients alike.
