Hi friend 👋

Over the past few months, Warren Buffett has been buying a mysterious stock.

Last weekend, the name of the stock was revealed.

The company Buffett was buying? UnitedHealth Group.

I think this is quite funny.

In May, TJ and I were in Omaha to attend the annual shareholder meeting of Berkshire Hathaway.

A stock TJ pitched me at the bar?

UnitedHealth Group.

He said the company was providing a great opportunity for investors for two main reasons:

1. It’s an amazing dividend growth company

2. The stock is very cheap

And guess what?

Warren Buffett bought UnitedHealth for exactly the two reasons TJ mentioned to me at the bar.

As TJ works on the dividend newsletter, UnitedHealth could already be found in the Compounding Dividends portfolio.

The fact that the stock is up +22% over the past 5 days is great.

It means Our Portfolio made a profit of $10.595,3 just from UnitedHealth Group in 5 days.

You are not a Partner of Compounding Dividends yet? Find out here whether it’s something for you.

📚 Deep Dive UnitedHealth Group

1. Do I understand the business model?

UnitedHealth Group’s Business Overview

Company Scale:

• UnitedHealth Group is a massive and vertically integrated healthcare system.

• It touches every aspect of the U.S. healthcare system, serving over 150 million people and generating $400 billion in annual revenue.

Business Structure:

UnitedHealth Group is divided into 2 segments:

• UnitedHealthcare (UHC): The insurance arm, which underwrites risk, pays for care, and collects premiums

• Optum: The services and tech platform

UHC drives the majority of revenue.