Warren Buffett’s Berkshire Hathaway has acquired 5 million shares in UnitedHealth Group, a regulatory filing showed on Thursday, sending the health insurer’s stock up 7% in extended trading.
Billionaire investor Buffett owned about 1.18 million shares in UnitedHealth between 2006 and 2009, before selling his entire stake in 2010 amid a broader retreat from health insurers.
The investment comes as UnitedHealth faces soaring medical costs, federal investigations, the fallout of the killing of a top executive and a cyberattack last year.
The healthcare conglomerate has signaled prolonged pain with a new, far lower profit forecast as it sees billions of additional costs in the upcoming quarters.
Shares of the Dow component have slumped 46% so far this year.
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This story originally appeared on NYPost
