No. of Recommendations: 3
Molina Healthcare (MOH) added ~3% in the premarket on Tuesday after famed money manager Michael Burry likened the beaten-down managed care firm to billionaire investor Warren Buffett’s auto insurer Geico.
“Molina is looking to make money (albeit less money) in Medicaid in 2026 while most of its competition loses money and seems best-positioned to emerge stronger as the cycle turns,” the "Big Short" investor wrote in a Substack post titled “Ghosts of GEICO Past," on Tuesday.
"Molina, like GEICO in those early days, operates at the lowest expense ratio in its industry and focuses on a well-defined customer base it knows very well," Burry wrote.
With Molina (MOH) down ~43% YTD, he acknowledges that the stock has tumbled amid industry headwinds but adds that the company will become a buyout target if its valuation remains cheap.
https://seekingalpha.com/news/4535853-molina-gains... 