Company Commentary: Caution on United Healthcare as a Potential Value Trap

16 days ago

Brett

"First one. United Healthcare. Now this is not one I thought you would know. I don't think either of us has ever have ever ever owned this. People are bullish. Bergkshire is clearly bullish because of the downturn this year in the whole ACA market. And I think you could be walking into a value trap here by saying, "Oh, Buffett bought it." Probably not even him. Berkshire bought it. It's cheap. The healthcare industry is going to just be entrenched forever and ever and ever. And I think you could be walking into picking up some pennies in front of the steamroller."

In this segment, the speaker discusses United Healthcare, cautioning that despite its cheap-looking valuation and bullish endorsements from Berkshire, investors could be buying into a value trap. The commentary centers on structural issues in the healthcare sector and concerns that past performance may not translate into future growth, warning investors against complacency.

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