Billionaires Warren Buffett and David Tepper and "Big Short" Investor Michael Burry Just Bought UnitedHealth Group Stock. Should You?

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Keith Speights, The Motley FoolSat, Aug 23, 2025, 9:44 AM 5 min readBuffett, Tepper, and Burry bought shares of UnitedHealth Group in Q2.The stock is popular with these wealthy investors because of its attractive valuation.Other investors could find UnitedHealth Group appealing as well.10 stocks we like better than UnitedHealth Group ›The old saying that "birds of a feather flock together" doesn't always apply to the world of the super-wealthy. Rich investors often follow their own paths rather than buying the same assets. So when several of them gravitate to the same stock, it's worthy of notice.An example of such herding occurred recently. Billionaires Warren Buffett and David Tepper, as well as investor Michael Burry (featured in the movie The Big Short) just bought UnitedHealth Group (NYSE: UNH) stock. Should you?Image source: Getty Images.Buffett's initiation of a new position in UnitedHealth Group for Berkshire Hathaway's portfolio in the second quarter of 2025 made big waves. For one thing, the legendary investor has been a net seller of stocks for 11 consecutive quarters, so any significant purchase is newsworthy. Berkshire's stake in UnitedHealth tops $1.5 billion.This wasn't Buffett's first time owning the health insurance stock. He first bought shares of UnitedHealth Group in late 2006 and added to his position in subsequent quarters before eventually selling the entire stake in the fourth quarter of 2009.Tepper amassed a fortune running his Appaloosa hedge fund. He increased Appaloosa's stake in UnitedHealth Group by a whopping 1,300% in Q2. The healthcare giant now ranks as the hedge fund's second-largest position, making up nearly 12% of its total portfolio.Burry rose to fame after making a fortune betting against subprime mortgages ahead of the financial crisis of 2007 and 2008. He isn't a billionaire like Buffett and Tepper, but is quite wealthy with an estimated net worth of around $300 million. Burry found UnitedHealth Group stock appealing in Q2 as well. His Scion Asset Management hedge fund bought 20,000 shares of the health insurer in recent months.There's a simple reason why Buffett, Tepper, and Burry like UnitedHealth Group these days: It's rare for a blue chip stock to be available at a steep discount. But UnitedHealth is a bargain right now.Shares of the health insurer remain more than 50% below the peak set in the fourth quarter of 2024 despite a bounce stemming from these famous investors' purchases. UnitedHealth Group's price-to-earnings ratio of 13 reflects its lowest valuation in more than a decade.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,466.91 +96.74 (+1.52%)Dow 3045,631.74 +846.24 (+1.89%)Nasdaq21,496.54 +396.22 (+1.88%)Russell 20002,361.95 +87.85 (+3.86%)VIX14.22 -2.38 (-14.34%)Gold3,418.50 +36.90 (+1.09%)PortfolioSign in to access your portfolioSign inTop gainersOPEN Opendoor Technologies Inc. 5.01 +1.41 (+39.17%)UI Ubiquiti Inc. 510.23 +119.66 (+30.64%)MNSO MINISO Group Holding Limited 26.63 +4.46 (+20.12%)RXO RXO, Inc. 16.97 +2.27 (+15.44%)NIO NIO Inc. 6.34 +0.80 (+14.44%)Top losersNEGG Newegg Commerce, Inc. 100.75 -15.03 (-12.98%)BJ BJ's Wholesale Club Holdings, Inc. 97.11 -9.05 (-8.52%)INTU Intuit Inc. 662.66 -35.10 (-5.03%)DUOL Duolingo, Inc. 331.87 -13.65 (-3.95%)CSX CSX Corporation 34.58 -1.29 (-3.60%)Most activeOPEN Opendoor Technologies Inc. 5.01 +1.41 (+39.17%)NIO NIO Inc. 6.34 +0.80 (+14.44%)INTC Intel Corporation 24.80 +1.30 (+5.53%)NVDA NVIDIA Corporation 177.99 +3.01 (+1.72%)LCID Lucid Group, Inc. 2.0300 -0.0600 (-2.87%)Earnings eventsTrending tickersBUD Anheuser-Busch InBev SA/NV 63.86 +0.80 (+1.27%)UP Wheels Up Experience Inc. 2.1700 +0.1500 (+7.43%)RBLX Roblox Corporation 117.52 +2.67 (+2.32%)MP MP Materials Corp. 67.88 -0.40 (-0.59%)BTC-USD Bitcoin USD 114,832.02 -717.49 (-0.62%)Top economic events