NEW DELHI, Aug 16: Berkshire Hathaway acquired about 5 million shares of UnitedHealth Group Inc. in the last quarter making a stake of about USD 1.6 billion in the company.
Reportedly, the stake puts UnitedHealth at the 18th-largest position in the portfolio of Berkshire. Now, UnitedHealth is standing behind the giants like Amazon and Constellation Brands.
Following the news of investment from Buffet’s group, stocks of UnitedHealthcare Group witnessed a surge of about 13 per cent on Friday.
As per the filings, UnitedHealth attracted multiple investors in the last quarter, including Michael Burry and Appaloosa Management’s David Tepper.
UnitedHealth shares witnessed multiple backward jerks, but the regulatory filing made by Berkshire Hathaway came as a vote of confidence for the company.
Currently, the UnitedHealth Group has been trapped in a series of difficulties, including ongoing investigations related to Medicare billing practices, high medical cost trends affecting Medicare Advantage Margins, and the heated market competition.
This group is currently under a civil and criminal investigation by the US Department of Justice regarding its Medicare business. (UNI)
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