Warren Buffett’s Latest Move: The Stock That Lit Up Wall Street
The news pushed the stock above $306, offering relief to a company that had been heavily battered in recent months.
Quick overview
- Berkshire Hathaway purchased 5 million shares of UnitedHealth Group, causing the stock to surge 12%.
- UnitedHealth had previously lost over 45% of its market value in 2025 due to disappointing earnings and setbacks.
- The company faced significant challenges, including a major cyberattack and the tragic death of its CEO, Brian Thompson.
- Stephen Hemsley has returned as CEO, acknowledging past management and pricing mistakes as the company seeks recovery.
Berkshire Hathaway revealed it had purchased 5 million shares during the second quarter, a move that sent the stock soaring 12% and reignited investor interest, marking it as Wall Street’s newest big bet.
Shares of UnitedHealth Group surged 12% on Friday after Warren Buffett’s investment firm, Berkshire Hathaway, disclosed the acquisition of 5 million shares in the second quarter. The news pushed the stock above $306, offering relief to a company that had been heavily battered in recent months.
The leading U.S. health insurer had lost more than 45% of its market value so far in 2025, weighed down by disappointing earnings and a string of setbacks that tarnished its reputation with both investors and clients. Despite Friday’s rebound, UnitedHealth shares remain down nearly 40% for the year.
A Company Under Pressure: Cyberattack, Management Crisis, and Tragedy
The past year has been one of the most turbulent in UnitedHealth’s history. In 2024, its subsidiary Change Healthcare was hit by one of the largest cyberattacks ever recorded in the sector. The breach crippled payment systems for healthcare providers for months and forced the U.S. Department of Health to step in to restore operations.
The financial fallout was worse than anticipated, driving further declines on Wall Street. Matters escalated in December when Brian Thompson, CEO of insurance operations, was shot dead during a business trip in Manhattan. The incident shocked the public and reignited debate over the U.S. private healthcare system.
The suspect, 27-year-old Luigi Mangione, was arrested days later in Pennsylvania and now faces federal murder charges, with the possibility of the death penalty.
Hemsley’s Return and the Road Ahead
Amid the crisis, CEO Andrew Witty resigned, and longtime executive Stephen Hemsley returned to the helm. In his first call with investors, Hemsley acknowledged strategic and pricing mistakes that left the company unprepared for rising industry costs.
“Beyond the external factors that hit the entire sector, we made missteps in both management and pricing,” he admitted.
UnitedHealth’s rebound also had an immediate impact on the Dow Jones Industrial Average, which climbed nearly half a percentage point on the day. Back in May, UnitedHealth’s losses accounted for 88% of the Dow’s decline for the year — a stark reminder of the insurer’s weight on Wall Street.
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