UnitedHealth Group Inc (UNH)

Is down 20% in 6 months and trades at 6.5x EBITA vs. 12x historically, strong managers, $20 billion free cash flow and new share buybacks.

The DOJ is going after them for Medicare payments. Is taking some risk off the table.

Yes. It was a top pick of his last spring. He doesn't think there will be much negative impact from Washington investigating their billing practices, though there remains headline risk. Fundamentals are improving, though they are paying out more for medical costs, which he hopes will normalize. It's trading below the market PE, when usually it trades above.

It is integral to the systematic delivery of health care across the U.S. and is a leader in well vertically integrated companies. There are some headwinds which he thinks will dissipate. He likes the longer term prospects and is seeing the development of per capita growth.
Buy 29  Hold 1  Sell 0

He bought some yesterday. Didn't change guidance. Q4 profitability was OK, though revenue was a bit light. Health insurance in US will continue to grow, it's a leader. Core holding for him. Great distribution system, so cost is less than peers. Trump administration will not nationalize healthcare.

Well run and uses AI a lot. It's an easy punching bag in the US for critics of the healthcare system. Health is always a political hot knife, but HC is the biggest employer in the US. Some disagree, but it's not in their interest to screw customers (by denying claims). He has been this all the way down.

Healthcare stocks are no longer struggling with the post-Covid hangover, better earnings recently, and good news about Medicare this evening $21 billion payment boost). He expects a good report.

Low beta, more conservative name. Very significant scale. Far ahead of peers with strong alignment of medical insurance, pharmacy benefits, and healthcare services. Aging demographics are key drivers of demand. Shares are 19% off their highs, an opportunity. 18x PE for 11% growth. Yield is 1.7%.

Most diversified managed health care company (own clinics, software & insurance). Recent assassination of CEO not a major concern in terms of outlook for the business (although was a tragedy). Ability to raise prices very strong, with excellent margins on products. Will continue to buy shares. 

The entire US health insurance group is embroiled in a controversy that was unfortunately set off by the murder of UNH, specifically talk about how claims are treated at UNH. These stocks are falling, but hang on and let this pass and see how different parties react. There will always be a place for health insurance companies in the US.

They report Tuesday. Are the only health insurer that regularly beats earnings. Good risk/reward.

He started sell this in early 2023. Is up 20% since Q2, though. He sold it because loss ratios were off, though stabilizing now. 

Is a reliable compounder who always beat and raise, with reliable earnings growth. Solid. They raised their dividend 12%. Good upside to come.

They recovered from a cyber attack. Earnings are growing. Their HMO (Health maintenance organization) is the best in the business. It's a safe play in healthcare.