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.

UnitedHealth shares jumped 12 per cent on Friday after Warren Buffett’s Berkshire Hathaway snapped up a stake in the troubled US healthcare group. The new investment was disclosed in a filing late on Thursday detailing changes to Berkshire’s $268bn stock portfolio during the second quarter.

Key Takeaways UnitedHealth Group shares surged Friday after Warren Buffett’s Berkshire Hathaway revealed a stake in the embattled healthcare giant.After bottoming at the start of August, the stock has continued to gain momentum,

Shares of UnitedHealth Group surged nearly 14% on Friday after billionaire Warren Buffett's Berkshire Hathaway bought 5 million shares of the company, providing a shot in the arm for investors who think the health conglomerate will turn around under its new CEO.

Shares of some of UnitedHealth’s peers got a bump in the wake of Berkshire’s investment in the healthcare giant, and they all look cheaper based on price relative to expected earnings.