To The Moon

$UnitedHealth(UNH)$  

Buffett Drops $1.6B on UnitedHealth — Are You Buying at $300? 🚀📊

When Warren Buffett moves, markets pay attention.

In Berkshire Hathaway’s latest Q2 2025 13F, the Oracle of Omaha revealed a $1.6 billion stake in UnitedHealth Group (UNH) — buying in at an average of $314 per share.

Today, UNH trades below Buffett’s cost at ~$300.

👉 The rare question for retail investors: Do you buy with Buffett… or wait for a deeper pullback?

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Why UNH Could Be Buffett’s Quiet Power Play 💡

Buffett has dipped into healthcare before — but this is the #1 US health insurer, serving 50M+ members and dominating Medicare Advantage.

Why now?

📉 Valuation reset: Down from $550 in 2022 to ~$300 after policy fears

🛡 Defensive moat: Healthcare demand stays steady in any economy

👵 Demographics: 10k Americans turn 65 daily — expanding Medicare enrollment

⚖️ Policy clarity: 2025 Medicare payment rates weren’t as bad as feared

In short: Buffett may see stable growth at a bargain — something rare in a pricey S&P.

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The Stats Buffett Saw 📊

Market Cap: ~$275B

Forward P/E: ~17× (below 5-year avg. of 20×)

Dividend Yield: 1.6% (10 years of growth)

2025 EPS est.: ~$19.50 (+9% YoY)

Operating margin: ~6% — stable despite cost pressures

For Buffett, this is predictable cash flow + sector leadership = long-term compounding.

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The Risks He’s Willing to Take ⚠️

Regulatory crosshairs — Medicare Advantage remains political hot ground

Medical cost creep — Higher treatment costs can bite into margins

Fierce competition — Humana, CVS/Aetna, Elevance all fighting on price

Even Buffett knows: one bad policy cycle can dent profits fast.

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Technical Check 🔍

UNH has been locked between $290–$330 since April.

Bull case: Break above $330 could aim for $360–$380.

Bear case: Slip under $290 may retest $270 lows.

Right now, it’s sitting right at support — perfect spot for patient entries… or cautious sideline watching.

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How You Could Play It 🎯

1. Long-term Buffett style — Buy near $300, reinvest dividends, hold for 5+ years.

2. Short-term range trade — Play $290–$330 swings and watch policy headlines.

Ask yourself: Am I here for decades of compounding, or a tactical trade?

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Bigger Picture — Why Buffett’s Bet Matters

With the S&P near record highs, Buffett choosing defensive growth signals he’s prioritising quality over hype. Healthcare could be a quiet outperformer into 2025 as rate cuts arrive and an aging population drives steady demand.

Catalysts ahead:

Q3 earnings (October) → enrollment + margin updates

2026 Medicare proposals → policy risk clarity

Possible healthcare M&A → growth acceleration

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💬 My Take: Buffett buying at $314 means retail investors have a shot at joining him below his entry — a rare alignment. The upside isn’t moonshot territory, but the sleep-well-at-night profile is real.

🔥 Question for you: Would you buy UNH now at $300, or wait for $280 to load up?

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