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How To Trade The $1.6 Billion Warren Buffett Catalyst

Timothy SykesAvatar
Written by Timothy Sykes
Updated 8/16/2025 5 min read

In this article Last trade Dec, 19 7:44 PM

  • UNH-0.38%
    UNH - NYSEUnitedHealth Group Incorporated (DE)
    $326.90-1.24 (-0.38%)
    Volume:  19.12M
    Float:  903.30M
    $326.07Day Low/High$334.60
  • UNHG-0.81%
    UNHG - NYSELeverage Shares 2X Long UNH Daily ETF
    $18.35-0.15 (-0.81%)
    Volume:  1.46M
    Float:  11.15M
    $18.28Day Low/High$19.22

Warren Buffett just shocked Wall Street with a $1.6 billion bet …

When the Oracle of Omaha makes a move, the world watches. And it’s impossible to ignore his recent investment.

In the latest quarterly filing for Berkshire Hathaway, the market learned of Buffett’s massive position in a beaten-down company that’s been under heavy fire from the media, regulators, and investors alike.

  • The stock? Down nearly 50% this year.
  • The headlines? Brutal.
  • The timing? Classic Buffett.

After the filing dropped on Thursday, the market reaction was immediate. Shares spiked 10% during after-hours trading, already a big move for this company …

And the price spiked even higher on Friday.

This momentum is bound to gain steam as the news circulates. Plus, there’s a perfect opportunity for us to play this volatility with cheap shares.

Don’t miss the early price action!

Buffett’s Billion-Dollar Stock Pick

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This is the kind of market jolt that traders dream about.

After months of brutal headlines, plunging share prices, and mounting regulatory pressure, one of America’s largest healthcare companies was left to wallow by most investors.

Shares were cut nearly in half in 2025. The company pulled its earnings outlook. Its CEO abruptly stepped down. A Justice Department investigation loomed over its Medicare billing practices …

Then — out of nowhere — the mood flipped.

On Thursday evening, August 14, the SEC dropped a bombshell. Warren Buffett’s Berkshire Hathaway disclosed a massive new position worth roughly $1.6 billion.

It wasn’t just Buffett, either. Legendary contrarian Michael Burry and hedge fund titan David Tepper also revealed sizable stakes.

By Friday’s opening bell, traders piled in. The stock roared 14% higher on Friday, marking its biggest gain since 2008 and adding over 200 points to the Dow Jones Industrial Average.

For Buffett, whose hallmark is buying quality companies in moments of maximum pessimism, the timing was classic.

For traders, the sudden surge offered fresh volatility and potential profit opportunities.

The name of this beaten-down giant? UnitedHealth Group Incorporated (NYSE: UNH).

How To Trade This Setup

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I don’t usually trade stocks with a $300 share price …

Each share is too expensive. And the stock never spikes enough to find solid profits.

The 14% spike on UNH last week was a massive outlier.

But there’s a way to trade this momentum for larger percent gains, while spending less money per share.

For example, Long UNH Daily ETF (NASDAQ: UNHG) is an ETF that tracks UNH at a cheaper share price.

It traded at $17 per share last week compared to UNH’s $300.

And because the share price is cheaper, the percent gain is larger.

UNH spiked 14% on Friday.

The same move for UNHG measured 28%.

Do you see what I mean? The shares are cheaper and there’s more meat on the table.

Plus, the stocks show the exact same price action. Compare the charts below from Friday, every candle represents one trading minute.

UNH:

UNH chart intraday 1-minute candles Source: StocksToTrade
UNH chart intraday 1-minute candles Source: StocksToTrade

UNHG:

UNHG chart intraday 1-minute candles Source: StocksToTrade
UNHG chart intraday 1-minute candles Source: StocksToTrade

My millionaire students and I focus on cheaper stocks because there’s more opportunity for small account traders to grow.

Warren Buffett’s newest investment is a perfect example of this strategy at work.

And it doesn’t stop here …

I’ve traded cheap stock spikes for over two decades. And in that time, I’ve pulled $7.9 million in trading profits from the market, including losses.

My most successful student, Jack Kellogg, has profited $20.3 million since starting in 2017.

These volatile stocks like to follow specific patterns that my millionaire students and I use to profit.

The trades can be quick. The risk is controlled. And there’s ALWAYS a plan.

Watch my video below for a full tutorial of this trading process:

UNH and UNHG are both in play this week. Use the information from my video above to build smart trade plans.

And it doesn’t stop here. This 2025 market is full of insane volatility!

Stay vigilant for the next big runner.

Cheers

 

*Past performance does not indicate future results


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Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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In this article (YTD Performance)


* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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