Warren Buffett's Successor, Greg Abel, Cashed Out on UnitedHealth. But Is the Stock a Steal at Its Current Valuation?
Buffett originally bought shares of the health insurance giant last year.
Overview
Warren Buffett last year prepared to vacate his spot in the driver's seat at Berkshire Hathaway and hand over the steering wheel to Greg Abel. But before he did so, he bought a few new stocks -- and one of them was UnitedHealth Group (NYSE: UNH), a down-but-not-out health insurance leader. As CEO of Berkshire Hathaway, Buffett added the stock to his portfolio in the second quarter of the year.
At the time, UnitedHealth was struggling with a number of challenges, but Buffett likely viewed it as a strong recovery story, particularly considering the company's market leadership: UnitedHealth is the country's biggest health insurer.
Details
Earlier this year, though, Abel, in his first quarter as Berkshire Hathaway CEO, decided to cash out on this healthcare giant. He sold the entire position, or 5,039,564 shares. UnitedHealth previously represented 0.6% of Berkshire Hathaway's portfolio.
Source
Originally published at www.fool.com.