The Oracle of Omaha just took a $1.6 billion stake in the battered healthcare giant, sending shares soaring 9% after hours.

While the "vote of confidence" from Buffett's investment validates the long-term value of UnitedHealth shares, the "management needs to regain trust and credibility with investors, and get back to its beat and raise reputation of the past," said James Harlow, senior vice president at Novare Capital Management.

UnitedHealth has been the Dow’s worst performer of 2025, but jumped 13% Friday. Here’s why Buffett and other leading hedge funds suddenly love the stock.

The investment comes as UnitedHealth faces soaring medical costs, federal investigations, the fallout of the killing of a top executive and a cyberattack last year.

B stake in UnitedHealth Group Incorporated signals a market shift. Click for why I have now upgraded UNH stock to Buy.

Buffett owned UnitedHealth shares before selling his stake in 2010, though his Berkshire Hathaway recently acquired shares.

Warren Buffett's modus operandi is to wait for price dislocations to present themselves. In a historically pricey stock market, locating value has been virtually impossible. Yet, with UnitedHealth Group stock losing more than half its value since the midpoint of April, a rare price dislocation has emerged.