UnitedHealth Just Proved Warren Buffett Right -- Again
Flashback to the second quarter of last year. The wheels seemed to be coming off for UnitedHealth Group (NYSE: UNH). The healthcare giant first revised its full-year outlook downward, then yanked the guidance altogether. Its CEO was shown the exit door. Reports surfaced about an investigation by the U.S. Department of Justice. UnitedHealth's stock was sinking fast.
But there was at least one major investor who wasn't worried. Warren Buffett initiated a $1.6 billion stake in the health insurance stock for Berkshire Hathaway's (NYSE: BRKA) (NYSE: BRKB) portfolio. Buffett saw an overreaction related to temporary issues facing a company that remained fundamentally strong.
Now, let's return to the present. UnitedHealth Group reported its first-quarter results on Wednesday. And the investing world got to see why Buffett earned the nickname "the Oracle of Omaha." UnitedHealth proved Buffett right -- again.
Source Fool.com
UnitedHealth Group Inc. Stock
The stock is one of the favorites of our community with 67 Buy predictions and 3 Sell predictions.
As a result the target price of 340 € shows a slightly positive potential of 1.55% compared to the current price of 334.8 € for UnitedHealth Group Inc..
