Why Big Investors Are Piling Into UnitedHealth Despite Its Struggles
It’s not every day that you see some of the world’s most famous investors all move into the same stock at the same time. But that’s exactly what’s happening right now with UnitedHealth Group, better known as UNH. And the roster of names involved is impressive: Warren Buffett, David Tepper, Chris Davis, Joel Greenblatt, Donald Yacktman, and even Michael Burry—the “Big Short” investor who became famous for calling the 2008 housing collapse.
So why are all these heavy hitters suddenly circling around the same company? Let’s break it down.
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UnitedHealth is the largest health insurer in the United States. On top of that, it owns Optum, a powerhouse in health services ranging from pharmacy benefits to care delivery. Together, these businesses generate massive earnings and consistent cash flow. But this year has been tough for the stock. Shares of UNH have plunged about 40%, making it the worst performer in the Dow Jones Industrial Average in 2025. The drop has been tied to rising costs in its Medicare Advantage business and operational hiccups in its Optum Rx division.
Now, here’s where it gets interesting. While many investors have been scared off by these challenges, a group of legendary money managers is doing the opposite—they’re buying in. David Tepper, for example, boosted his UNH stake by more than 2.2 million shares, signaling confidence in the company’s ability to manage through policy changes and still deliver profits. Chris Davis massively expanded his fund’s holdings as well, showing long-term faith in the durability of the business.
And then there’s Warren Buffett’s Berkshire Hathaway, which opened a brand-new $1.57 billion position. When Buffett takes a swing, people pay attention. But perhaps the most eyebrow-raising move came from Michael Burry. Known for betting against the housing bubble, Burry didn’t just buy stock—his fund also picked up 350,000 call options. That’s a sophisticated way to amplify gains if the stock rebounds, while putting less cash at risk upfront. It suggests he sees real opportunity here, not just a gamble.
At today’s valuation, UnitedHealth is trading at around 13 times earnings—near the lowest multiple it’s had in five years. For contrarian investors like Burry, that’s exactly the setup they like: a high-quality business that looks beaten down but still produces tens of billions in free cash flow every year. The market’s pessimism might already be fully baked into the stock price, which means the upside could be significant if the company steadies operations.
So the big question is—should regular investors follow these giants into UNH? That’s always a personal call, but here’s the takeaway: when so many different types of investors—value legends, quant funds, and contrarians—are all converging on the same stock, it signals more than just a passing trade. They seem to be betting that UnitedHealth isn’t a broken business, just a mispriced one. And if they’re right, this healthcare giant could be poised for a comeback that rewards those who had the courage to buy when others were fearful.
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