UnitedHealth Shares Soar 30% Despite Berkshire Hathaway Stake Possibly Underwater

UnitedHealth Group's shares have surged nearly 30% following Berkshire Hathaway's mid-August disclosure of purchasing over 5 million shares between April and June, with the stock climbing from $271.49 to $352.51. Despite the rally boosted by Warren Buffett's endorsement, Berkshire's investment may still be at a paper loss depending on the purchase price, which remains undisclosed; estimates suggest it could be 8% below cost if bought at an average Q2 price, though likely acquired near the quarter's low. Analysts remain cautiously optimistic about UnitedHealth's turnaround prospects, with Morgan Stanley raising its price target and highlighting management's confidence, especially in Medicare Advantage and Optum Health segments. The company reaffirmed its 2025 earnings guidance and projected revenue, with improvements in Medicare Advantage plan quality ratings contributing to positive market sentiment. However, UnitedHealth shares are still down about 30% year-to-date amid ongoing operational challenges and regulatory scrutiny. Berkshire Hathaway, typically a long-term investor, appears to be positioning for a recovery despite the current uncertainties around its stake's profitability.