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🩺 Entry into UnitedHealth

Like many here, I also invested in United Health ($UNH) (-1,28 %) this week - and deliberately at a time when many investors have lost confidence. Here are my thoughts:

🔻 Massive sell-offs

UnitedHealth has lost around 60 % from its high - driven by legal uncertainties, negative newsflow and general uncertainty.

💰 "Purchasing is where the profit lies"

For me, this was a classic case of anti-cyclical entry. If operational substance remains intact but panic dominates, an attractive entry opportunity can arise.

🕵️ Unusually high insider buying

In the last few days over 400 million dollars in share purchases (06.06.25) registered - possibly by institutional investors. Rumors point to participation by Berkshire Hathaway ($BRK.B) (-0,28 %) is involved. There will be no official clarity until the next 13F filing at the earliest.

📈 Dividend increase as a signal

Despite the headwinds, the quarterly dividend was increased from USD 2.10 to USD 2.21 - This is a sign of operational strength and management confidence (increase of just under 5%).

I see UnitedHealth as a long-term quality company with temporary problems. For me an exciting anti-cyclical position - with upside when confidence recovers.

What do you think? Will the slide continue for the time being?

11.06

UnitedHealth

Acheté à 265,75 €

12 Commentaires

Specter@Specter

I'm also thinking about it. How do you see the Trump factor? I know political stock markets etc.
But: he's also pretty focused on healthcare, so I'm a bit skeptical right now.

What's more, health insurance companies could have to deal with rising costs in the future that they can't pass on directly.

And: UNH was massively overpriced for an insurance company. Now, after the sell-offs, I think the company is at a solid valuation.

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NikolaiR@NikolaiR

@BamBamInvest I will remind you in 3 years and claim my return 😄

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BamBamInvest@BamBamInvest

@NikolaiR then I went into hiding 😁

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NikolaiR@NikolaiR

I can absolutely understand your thoughts...

I actually see the Trump factor similarly to you - should Trump really aggressively regulate or attack existing programs, that could lead to even more volatility in the short term.

Rising costs are definitely an issue. However, I trust UNH to manage such effects better in the medium term, to balance them out or to pass them on.

The valuation - I fully agree it was already expensive. Now it is at a level that I consider solid in terms of quality - especially if you think anti-cyclically.

But of course, the value is not without risk. That's precisely why it's a bet on my part 😉

Which healthcare stocks are you primarily invested in? Or, like me, a primary position outside of ETFs?

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Specter@Specter

@NikolaiR For me, the health sector is not my first choice. I'm not in any of them at the moment because nothing completely convinces me.
Researchers (by which I mean companies that are barely making any money at the moment but are researching for the future) are difficult to value for precisely these reasons.
The supposedly solid ones a la Johnson and Johnson are fundamentally terrible and Johnson has other problems as well.
And then there's something like AbbVie: fundamentally (for the stocks that are relevant to me) I'm almost jumping out of the basement window...

If I were to buy anything, I think it would be the big Swiss companies. But currently 0.0% healthcare sector for me.

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Suky@Suky

I joined UnitedHealth on 21.05 - currently around 12% of my portfolio.
This has given me additional confidence: The share price was remarkably stable over the course of a month, without any noticeable movements - despite the difficult news situation.

Today, it is showing strength again for the first time - the momentum is turning.
With strong insider demand, a dividend increase and a stable basis, I also see a clear anti-cyclical opportunity here for long-term investors.

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NikolaiR@NikolaiR

@Suky I agree with that! At 12%, it naturally also makes up a considerable part of your portfolio 💪🏻

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Suky@Suky

@NikolaiR I've only been investing since March, so UNH currently accounts for 12% of my portfolio.
It was a great opportunity for me that I didn't want to miss - but in the long term I plan to reduce the weighting and diversify more broadly.

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Pazzzi@Pazzzi

I see massive risks in the company and business model which would normally prevent me from buying. I also don't like the future prospects...

Nevertheless, I'm gambling in the short term because I think the company is extremely undervalued and the discount is far too high. I think 20-30% profit can be made back quickly (+dividend):
Reasons:
● Insider buying
● Quarterly figures bring clarity=new forecast
● Legal proceedings will not have a major impact on the fundamental development

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NikolaiR@NikolaiR

I like to take the 20-30% with me 👍 I generally like to work with trailing stops.

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BamBamInvest@BamBamInvest

That is the way! ✌️ I think you won't regret your decision for 2-3 years.

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NikolaiR@NikolaiR

@Specter Take a look at Optum, the subsidiary of UNH.

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