Warren Buffett's Berkshire Hathaway has acquired 5 million shares in UnitedHealth Group , a regulatory filing showed on Thursday, sending the health insurer's stock up 7% in extended trading.

UNH stock soared after Warren Buffett’s Berkshire Hathaway revealed it bought shares of the healthcare company. Nonetheless, UnitedHealth faces a long list of unresolved issues.

Berkshire’s Big Bet on UnitedHealth Berkshire Hathaway’s (NYSE:BRK-A)(NYSE:BRK-B) release yesterday of its latest 13F filing sent ripples through the market as it revealed a new 5 million share stake in UnitedHealth Group (NYSE:UNH) worth approximately $1.

Berkshire Hathaway’s UnitedHealth Group Incorporated investment highlights confidence in healthcare. Click for why I am bullish on UNH stock prospects.

Shares of UnitedHealth Group are surging before the market open Friday as Warren Buffett’s Berkshire Hathaway disclosed that it recently purchased shares of the beleaguered insurer.

Warren Buffett's modus operandi is to wait for price dislocations to present themselves. In a historically pricey stock market, locating value has been virtually impossible. Yet, with UnitedHealth Group stock losing more than half its value since the midpoint of April, a rare price dislocation has emerged.

Warren Buffett's Berkshire Hathaway increased its holdings in UnitedHealth Group stock, and also added positions in D.R. Horton, Lamar Advertising, and Nucor.