I don't want to brag as the stocks market became as volatile as the crypto market, but I will still do it for the day on my investment into the United Health. How did I get to invest in it? Well, I did after reading a news published on Aug 14 by Reuters that "Warren Buffett's Berkshire Hathaway (BRKa.N), in a new tab disclosed on Thursday that it did a new investment in UnitedHealth Group (UNH.N). Berkshire said it owned 5.04 million UnitedHealth shares worth about $1.57 billion as of June 30." It took a while for me for the information to settle down and get the courage to do it as I've thrown quite a big chunk of money at it. I've bought in yesterday at $320 and surprise, surprise! Today the price jumped as high as $350 and it is current trading a little bit under. So that is quite a boost of enthusiasm for me as in 1-2 days I see already +10% on the UNH stock in my portfolio. While anything can happen tomorrow, I am quite happy for today. 😀
Why United Health?
First of all, I didn’t know much about United Health before reading that news to be honest. And I didn't read the news by mistake, but rather I got to it after reading some article right here on the Hive blockchain, but don't remember right know exactly the author (not that there are many in this ecosystem, while I consider there should be many more tackling the stocks market). I found out that United Health is just a giant in medical sector in US and its price almost did an All Time High of $600. And due to some problems and weak numbers, its stock price crumbled down to $250 after which it started slowly going up again. And this plays in the right stock for Warren Buffet, even if he might/or not be the decision factor on this - solid companies which are passing through a bad patch. And if they invested, I am sure they did their due diligence. So this is an investment not derived from much analysis from my side, but rather my gut feeling following Berkshire and Warren Buffet serious investment on it. And to tell you something more - they even pay dividends between 2-3%. So if you consider dividends + price appreciation, that is the perfect combo.
Timing buy of United Health stock
For me, the timing was everything in this case. Seeing Berkshire Hathaway step in gave me that extra motivation to do it as well, even if I could have done it much earlier. The fact that Warren Buffett and his crew found value in UNH, I was thinking that aligning myself with their strategy wouldn't be the worst move that I can do on a stock. So yesterday I got a bunch of stock of UNK and today seeing the market giving me a 10% pop right away, it honestly felt like catching a good wave at the beach. This should be a good cushion also if the price declines in the incoming days, but in the same time can be a good start for building something better. But for me it feels quite good to catch the wave before getting more force as probably if I wouldn't jump into it, after today's price increase I wouldn't buy in anymore as the price already got more expensive.
My learnings as an amateur investor
My previous stocks investments were driven mostly by me analyzing the macroeconomics (as much as I good) and investing in what I thought it could do good in our times - Rheinmetall was a good play for example for me in this war spreading times, giving me more than 120% yield. But what jumping into United Health has taught me is that sometimes it’s not about predicting the market but about paying attention to signals. When seasoned investors like Warren Buffett or big firms such as Berkshire put their money into a company, it’s worth at least investigating. I’m also realizing that emotions play a huge role. Seeing the stock climb immediately gave me excitement, but I know I shouldn’t let short-term gains cloud my judgment. Tomorrow, the price could dip again. That’s just how stocks work. What matters is whether the company itself keeps growing over the long term.
For now, I’m keeping my UNH shares in my portfolio for a long term play. I am looking at both price appreciation, but also some dividends along the way. If Berkshire is in it and maybe also Warren Buffet has something to do with it, I figure it’s a good stock to balance the others. It feels quite good for me to have jumped in at the right moment and it gives me more confidence to continue learning about stocks and tracking others. I am well aware that I am another amateur investor in stocks, but this little win with United Health is a reminder that you can play smart tracking the right people and signs in the market.