Buffett Drops $1.6B on UnitedHealth — Are You Buying at $300? 🚀📊
When Warren Buffett moves, markets pay attention.
In Berkshire Hathaway’s latest Q2 2025 13F, the Oracle of Omaha revealed a $1.6 billion stake in UnitedHealth Group (UNH) — buying in at an average of $314 per share.
Today, UNH trades below Buffett’s cost at ~$300.
👉 The rare question for retail investors: Do you buy with Buffett… or wait for a deeper pullback?
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Why UNH Could Be Buffett’s Quiet Power Play 💡
Buffett has dipped into healthcare before — but this is the #1 US health insurer, serving 50M+ members and dominating Medicare Advantage.
Why now?
📉 Valuation reset: Down from $550 in 2022 to ~$300 after policy fears
🛡 Defensive moat: Healthcare demand stays steady in any economy
👵 Demographics: 10k Americans turn 65 daily — expanding Medicare enrollment
⚖️ Policy clarity: 2025 Medicare payment rates weren’t as bad as feared
In short: Buffett may see stable growth at a bargain — something rare in a pricey S&P.
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The Stats Buffett Saw 📊
Market Cap: ~$275B
Forward P/E: ~17× (below 5-year avg. of 20×)
Dividend Yield: 1.6% (10 years of growth)
2025 EPS est.: ~$19.50 (+9% YoY)
Operating margin: ~6% — stable despite cost pressures
For Buffett, this is predictable cash flow + sector leadership = long-term compounding.
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The Risks He’s Willing to Take ⚠️
Regulatory crosshairs — Medicare Advantage remains political hot ground
Medical cost creep — Higher treatment costs can bite into margins
Fierce competition — Humana, CVS/Aetna, Elevance all fighting on price
Even Buffett knows: one bad policy cycle can dent profits fast.
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Technical Check 🔍
UNH has been locked between $290–$330 since April.
Bull case: Break above $330 could aim for $360–$380.
Bear case: Slip under $290 may retest $270 lows.
Right now, it’s sitting right at support — perfect spot for patient entries… or cautious sideline watching.
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How You Could Play It 🎯
1. Long-term Buffett style — Buy near $300, reinvest dividends, hold for 5+ years.
2. Short-term range trade — Play $290–$330 swings and watch policy headlines.
Ask yourself: Am I here for decades of compounding, or a tactical trade?
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Bigger Picture — Why Buffett’s Bet Matters
With the S&P near record highs, Buffett choosing defensive growth signals he’s prioritising quality over hype. Healthcare could be a quiet outperformer into 2025 as rate cuts arrive and an aging population drives steady demand.
Catalysts ahead:
Q3 earnings (October) → enrollment + margin updates
2026 Medicare proposals → policy risk clarity
Possible healthcare M&A → growth acceleration
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💬 My Take: Buffett buying at $314 means retail investors have a shot at joining him below his entry — a rare alignment. The upside isn’t moonshot territory, but the sleep-well-at-night profile is real.
🔥 Question for you: Would you buy UNH now at $300, or wait for $280 to load up?
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