Since Greg Abel took over from Warren Buffett as the leader of Berkshire Hathaway at the start of 2026, the conglomerate has kept its core equity positions intact but launched a sweeping review of smaller holdings. According to the firm’s latest 13F filings, Berkshire Hathaway has fully liquidated its stake in UnitedHealth Group (UNH). The move stands in stark contrast to the bullish stance from Goldman Sachs, putting the healthcare giant right at the center of fierce bull-bear debates across the market.
Overseeing 94% of Berkshire Hathaway’s stock portfolio, Abel spearheaded a portfolio reshuffle in the first quarter of 2026, offloading a string of minor equity positions. UnitedHealth Group was the most high-profile name among these divestments. Berkshire Hathaway built its position in the company during a previous share price pullback, holding roughly 5.1 million shares as of December 31 last year. By March 31 this year, the entire holding had been sold off.
Apart from UnitedHealth Group, the company also exited positions in Amazon, Domino’s Pizza, Mastercard and Visa. Most of these stakes were originally established by Todd Combs, who has since left Berkshire Hathaway for a new executive role. Proceeds from the share sales were deployed into new holdings in Delta Air Lines and Macy’s, while Berkshire Hathaway more than tripled its investment in Alphabet, Google’s parent company.
UnitedHealth Group’s share price has surged more than 40% since April, which seemingly suggests Berkshire Hathaway missed out on short-term gains. Nevertheless, the divestment was driven by concerns over the company’s long-term fundamental risks. UnitedHealth Group’s management admitted that its business transformation is still underway. The stock currently trades at a forward price-to-earnings ratio of around 21 times, pricing in an anticipated 12.3% earnings growth for 2026. Any earnings miss will likely trigger another share price decline. In the long run, the company needs to maintain double-digit earnings growth to sustain its valuation. If adjustments to Medicare policies and cost-cutting initiatives powered by artificial intelligence fail to deliver expected results, its earnings growth will be hampered, and the stock could even drop below $300. Faced with such uncertainties, Berkshire Hathaway decided to step back from the stock.
On the opposite side of the spectrum, Goldman Sachs has added UnitedHealth Group to its top recommended stock list. As the largest health insurer in the United States and the world’s fourth-largest healthcare firm by market capitalization, UnitedHealth Group has experienced sharp share price swings over the past two years, yet Goldman Sachs remains upbeat about its prospects.
The investment bank’s optimism mainly stems from an inflection point in its Medicare Advantage business. Two major headwinds that weighed on the company in prior periods have eased significantly. UnitedHealth Group withdrew its services from 109 unprofitable counties across 16 states, bringing its medical cost ratio down by 90 basis points year-over-year in the first quarter. Meanwhile, the finalized rate hike for Medicare Advantage plans in 2027 was far higher than the initial proposal from regulators. The firm’s Optum division is also seeing a clear upward trend in profitability.
Valuation-wise, UnitedHealth Group’s current forward P/E ratio sits below its 10-year average, leaving ample room for appreciation. Based on Goldman Sachs’ 12-month price target, the stock still has roughly 12% upside potential. A survey conducted by S&P Global showed that 22 out of 28 covering analysts have issued buy ratings, reflecting broad optimism among industry professionals. Amid heightened volatility across global markets, the healthcare sector’s defensive attributes have further boosted the investment appeal of UnitedHealth Group.
The stock also counts notable institutional investors among its shareholders, including Appaloosa Management led by David Tepper and Tudor Investment managed by Paul Tudor Jones.
The divergent views between Berkshire Hathaway and Goldman Sachs boil down to their different assessments of UnitedHealth Group’s short-term performance and long-term risks. Going forward, the implementation of Medicare-related policies and the delivery of earnings targets will dictate the stock’s trajectory. The bull-bear tug-of-war surrounding this healthcare heavyweight is set to continue.
