Berkshire Hathaway’s UnitedHealth Investment Faces Uncertain Returns Despite Rebound

Warren Buffett's Berkshire Hathaway remains in a precarious position with its UnitedHealth Group investment, despite the healthcare stock's 30% surge since mid-August. The conglomerate's 5 million-share acquisition, disclosed at a $271.49 reference price, now trades at $352.51—yet potential breakeven points remain elusive.

Analysts attribute UnitedHealth's momentum partly to Berkshire's endorsement, though the stake could still be underwater. With purchase timing undisclosed, scenarios range from a 42% loss (if bought NEAR Q2's $606 peak) to a 42% gain (if acquired at August's $248 low). The probable average cost basis of $1.9 billion suggests an 8% deficit at current valuations.

Market watchers await November's 13F filing for clarity on Berkshire's cost basis and potential additional accumulation during the quarter's volatility. The investment exemplifies how even blue-chip stocks can deliver asymmetric outcomes based on entry timing.