Revisiting The Health Insurers A Year After The Buffett Bottom

On August 19, 2025 I wrote a blog titled “A Better Way To Play The Buffett Bottom In The Health Insurers”. Buffett had been accumulating a large position that the SEC had given him permission not to disclose. When Berkshire disclosed that it was United Health (UNH), I suggested that this probably created a bottom in the health insurers – which were experiencing a massive selloff – but that Centene (CNC) had “2-3x the upside” as UNH.

This morning UNH reported a strong 2Q26 – including raising full year EPS guidance to $19.50-$20.00 from greater than $18.25 a quarter ago. UNH shares are +6% in the premarket and CNC are +3%. As you can see in the chart at the top of this blog, this has been an excellent trade with UNH returning ~40% and CNC ~130% in the eleven months since I wrote the blog. But the easy money has now been made and it’s time to take profits.

* Shoutout to Miner Forty-Niner (@DoubleEagle49) for retweeting the blog at the time.