Berkshire Hathaway Could Still Be Underwater on UnitedHealth Despite Stock Jump
UnitedHealth shares have soared nearly 30% since Berkshire disclosed buying 5M shares between April and June. The SEC filing followed a $271.49 close, and the stock now sits at $352.51.
Analysts note Berkshire could still be in the red depending on purchase timing. If shares were bought near Q2’s peak ($606), the $3.1B stake would be 42% underwater. Near the low ($248), the $1.3B stake shows a 42% gain. Using the average quarterly close, the stake would be ~8% below cost.
Year-to-date, UnitedHealth is still down ~30%, but optimism is rising. Morgan Stanley lifted its price target to $395 after management discussions. Jim Cramer said confidence may be returning among large investors despite ongoing investigations.
Elsewhere, Berkshire’s Kraft Heinz shares continue to fall amid its controversial split plan, which Warren opposed. His Forbes 400 rank dropped from #5 to #9, though net worth remains ~$150B. Generous donations this year reduced his stock holdings, which otherwise would have placed him near Elon Musk and Larry Ellison in wealth rankings.
Warren attended CNBC’s “Squawk Box” 30th anniversary this week, pictured with Jim Cramer, who called him his “lifelong idol.”
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