News or no big deal?
The news made United Health stocks rise double digit after closing bell last night: Berkshire made a play on troubled $UNH, buying about 5M shares in Q2.
What sounds like a big thing is rather tiny on Berkshire's scale. $1.5 billion is chump change with $340 billion in cash alone. So I wouldn’t overrate this move.
United Health has lost quite a bit the past months, falling -50% from its ATH. Now the valuation looks cheap, on paper, but who knows if they really can recover from the challenges they are facing currently?
If Berkshire doesn‘t put at least 5% of their cash in (~17B), which would be 10x of what they invested so far, I don’t give much on this. Its not a core Investment for them, not even a middle sized one, just some change thrown at a small comeback bet.
What do you think guys?
