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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: daveNG ✧  😊 😞
Number: of 22347 
Subject: Re: How can Berkshire spend $300B
Date: 07/31/25 2:58 PM
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I'm not at all suggesting the below example, however, in the past 17 years, there have been opportunities with distressed assets.

UNH - United Health Care

The stock is currently trading for ~2018-9 levels. (currently ~$250/sh)

There is a laundry list of reasons why it is out of favor, but is the business truly, significantly impaired moving forward?

In it's cohort, it's operating profit is some several % higher than other companies:




............................UNH.....................MCK.............CI.............CVS.............ELV
Company Name................UnitedHealth Group Inc..McKesson Corp...Cigna Group....CVS Health Corp.Elevance Health Inc
Last Price..................$252.15................$699.88.............$272.64....$62.38...........$287.35
Market Cap..................$241.34B...............$89.30B.............$79.57B....$78.81B..........$66.10B
Price / Earnings (TTM) .....11.52..................27.70...............16.50.......14.89............12.49
Annual Dividend Yield.......3.32%..................0.46%...............2.03%........4.27%............2.33%
EPS Growth Fcst3-5 Year.....+5.81%.................+12.26%.............+11.23%....+16.15%..........+12.75%
Net Profit Margin...........+5.22%.................+0.97%..............+2.11%.....+1.38%............+2.83%



A play where investment requires only to buy, then wait for the company to stabilize and then return to growth seems to be on the board.

Of course, UNH could see regulatory challenges, fines, other government impacts, technology disruptions and more corporate malfeasance.....
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This community has written 21,850 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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