Berkshire Completes the Fear-to-Greed Cycle: Full UNH Exit After 45% Gain

Berkshire entered when fear peaked and quietly exited after a 45% gain. It was a textbook nine-month trade.

Berkshire Hathaway has completely exited its stake in UnitedHealth Group (UNH). The conglomerate entered in Q2 2025, investing roughly $1.6 billion for approximately 5 million shares after UNH's stock collapsed more than 50%. The Q1 2026 13F confirmed a full exit. At the exit price of around $394, Berkshire booked approximately a 45% gain in under nine months.

Post-Assassination Collapse — Why Berkshire Stepped In

After CEO Brian Thompson's assassination in December 2024, UnitedHealth faced a cascade of setbacks: a rare earnings miss from elevated medical costs, CEO Andrew Witty's abrupt resignation, and a DOJ criminal investigation into alleged Medicare fraud. By August 2025, UNH had fallen to $271 — a 15-year low and over 50% below its 52-week high.

That's precisely when Berkshire entered. The business fundamentals — America's largest health insurer, $23B+ in annual operating cash flow — remained intact. It was textbook Buffett: be greedy when others are fearful.

Full Exit After 45% Rebound — Berkshire's Reasoning

With UNH recovered to $394, Berkshire sold everything. Beyond profit-taking, the move signals a judgment that the risk profile has shifted.

• DOJ criminal investigation ongoing — unresolved tail risk
• Medicare Advantage reimbursement pressure — industry-wide margin squeeze
• Safety margin evaporated — the crisis discount is gone
• Management uncertainty — post-CEO-turnover strategic continuity unclear

Berkshire selling doesn't mean UNH is in trouble. Berkshire has sold winners that kept climbing before. But it does signal that the easy money has likely already been made.

Abel's Year One — Portfolio Reshaping Underway

This exit is part of a broader portfolio overhaul since Greg Abel took over day-to-day operations in late 2025. Key moves so far:

• Kraft Heinz (KHC) — completely exited
• Bank of America (BAC) — stake sharply reduced over several quarters
• Amazon (AMZN) — 77% of position sold in Q4 2025
• UnitedHealth (UNH) — fully exited this quarter

Notably, both Amazon and UNH are widely believed to have been positions established by Berkshire investing lieutenant Todd Combs rather than Buffett personally. Abel appears to be trimming positions where the risk-to-reward has deteriorated, regardless of who initiated them.

What Smart Money Is Signaling

"Berkshire's sale looks less like panic and more like disciplined portfolio management after a fast rebound. But sharp investors should not ignore what Abel may be telegraphing — the easy recovery money has likely already been made."

24/7 Wall St.

Berkshire's UNH trade was a complete fear-to-greed cycle, executed with discipline. Enter when panic crushes a fundamentally sound business. Exit when the margin of safety disappears on the rebound. Individual investors can't replicate the scale, but the logic is worth studying closely.