Berkshire Hathaway's New Stake in UnitedHealth and Other Investment Moves

Berkshire Hathaway's UnitedHealth Investment

• 💡 Berkshire Hathaway has revealed a sizable new stake in UnitedHealth, a health insurer.
• 🎯 The investment, valued at approximately $1.57 billion as of the end of Q2, was disclosed in a 13F filing.
• ⚠️ The timing of the investment is noted, as UnitedHealth's stock had been previously "beleaguered" before this news caused it to soar.

Other Notable Investment Activities

• 🚀 Appaloosa also made a significant bet on UnitedHealth, adding 2.3 million shares, making it their largest single stock position.
• 💰 Michael Burry's Scion also acquired substantial notional exposure to UnitedHealth, exceeding $100 million.
• 🏠 Berkshire Hathaway also took new stakes in Newcor (steelmaker) and Dr. Horton (homebuilder), and bought a new class of shares in Lennar.

Market Reactions and Context

• 📈 The disclosure of Berkshire's stake sent UnitedHealth's stock soaring, with an approximate 13% increase the following morning.
• 📉 The discussion suggests UnitedHealth might have been trading at a significant discount, potentially around a 50% discount from its highs.
• ⏳ It's emphasized that 13F filings represent a snapshot as of the end of June, and positions may have changed in the subsequent six weeks.
• 🧐 The attention given to 13F filings, particularly from Berkshire Hathaway, is described as "unbelievable," despite the time lag.