Quick overview

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Warren Buffett purchased 5 million shares of UnitedHealth Group (UNH). The CEO of the Omaha, Nebraska-based conglomerate purchased 5 million shares of UnitedHealth, giving Berkshire a $1.16 billion stake in the company.. Additionally, Berkshire sold the $1 billion it held in T-Mobile US Inc., exiting the telecom provider during that period.

 

Buffett invested in UnitedHealth at a time when the healthcare organization was facing several crises. Brian Thompson, a UnitedHealth executive, was shot and killed in Manhattan last year. Unexpected increases in medical costs have also impacted UnitedHealth and other US health insurers. For the first time in over ten years, it released earnings in April that fell short of Wall Street expectations, causing the stock price to plunge.

The company announced plans to replace both its chief financial officer and its CEO.

The insurer’s shares experienced a 9.6% increase in post-market trading following Berkshire’s acquisition of a stake in UnitedHealth. Additionally, Buffett sold 20 million shares of Apple Inc. after reducing his stake in the iPhone manufacturer the previous year.

Berkshire’s holdings in Apple remain its largest equity stake by market value, despite experiencing a decline of approximately $9.2 billion in the three months ending June 30

Furthermore, Berkshire intensified efforts to reduce its stake in Bank of America Corp., having sold 26 million shares by the end of June, lowering its ownership to approximately 8%. Without providing any justification, Buffett began reducing his bank investment last year. A portion of the massive consumer foods company Kraft Heinz Co. is among its equity investments, which has caused issues for Buffett’s business. The conglomerate maintained its holdings in the second quarter despite incurring an impairment charge of $3.08 billion on its investment earlier this year.