Famed investor Warren Buffett has snapped up millions of shares in a company that Wall Street has run away from.
Berkshire Hathaway has quietly built a stake in insurer UnitedHealth over the past two quarters.
So far, they’ve accumulated 5 million shares in the company, a regulatory filing showed on Thursday.
Buffett, the investor known as the ‘Oracle of Omaha,’ has a decade-long track record of buying stocks during their dip and riding companies back to profits.
UnitedHealth is another example. The company has been on a 46 percent slide since January.
At the beginning of the year, UnitedHealth was trading at over $504. The stock closed today at just over $271.
The news of Buffett’s investment gave the company a quick reprieve: UnitedHealth’s share price jumped 10 percent in extended trading.
For years, the insurer was once seen as a dominant stock. Constant profit gains, a reputation for competent management, and all-important insurance contracts gave the stock a halo.
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Author: Marty Kaufmann
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