Buffett’s mystery stock has just been revealed - but this AI model already knew it

Investing.com -- Many investors may have been surprised by the news that Warren Buffett’s Berkshire Hathaway’s (NYSE:BRKa) (NYSE:BRKb) mysterious stock is none other than the healthcare conglomerate Unitedhealth Group (NYSE:UNH).

Amid an overall slowdown in the healthcare industry and public backlash against some of the company’s policies, followed by the tragic assassination of Brian Thompson, the company’s former CEO, most investors were looking at the beaten-down name as a done deal for the markets.

Not by accident, the stock has shed a brutal 45% since the beginning of the year.

But where the market saw wreckage, astute contrarian investors saw an opportunity. Such is the case of Warren Buffett and... you may have guessed it... our state-of-the-art AI-powered stock picker.

In fact, it had already flagged our premium members (who subscribed for less than $9 a month) that UNH was a potential turnaround play, including it on the list of picks for August - that is, BEFORE Buffett announced his stake in the company.

Here’s the rationale behind the AI’s choice for adding UNH stock to the list of picks:

Undervalued healthcare giant poised for recovery

• UnitedHealth Group represents a compelling buying opportunity following the recent price correction, with shares trading at just 60% of 52-week highs, despite solid fundamentals.
• Our ML engine highlights three key strengths in UNH’s profile: market performance potential, consistent growth metrics and attractive valuation multiples.
• The company maintains impressive growth with $410 billion in revenue (8% y/y increase) and strong expansion in the Medicare Advantage segment (projected member growth of 10% in 2025).
• At current levels, UNH offers exceptional value with a P/E ratio of 15.7 and a PEG ratio of 0.35, well below fair value estimates of $500-$530.
• Recent positive industry catalysts include a 5% Medicare Advantage payment increase for 2026, which supports the company’s long-term earnings growth target of 13-16%.

In short, at the same time as Buffett was buying the stock, the AI saw the same thing: Value and market underpricing.

This is the exact same reason why the AI picked two other names that are up a massive 57%+ this month ALONE.

*Already an InvestingPro member? Then jump straight to the selection of stock picks for August here.

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This isn’t the first time this has happened, by the way.

Last year, just before Buffett revealed he’d added Ulta Beauty Inc (NASDAQ:ULTA) to his portfolio — sending the stock soaring — our InvestingPro members had already received it on their AI-powered stock list of picks.

And how did it do that? Well, it wasn’t by foreseeing the future, but, rather, by running 150+ investor-grade analysis models, the system flagged the stock as poised to rally — the same opportunity Buffett saw... twice.

After the UNH rally, the strategy that includes UNH now has a jaw-dropping 100% of picks in the green in August, including impressive winners such as:

• Sapiens International Corporation: (NASDAQ:SPNS) +59.51% MTD
• Clear Secure: (NYSE:YOU) +17.16% MTD
• UnitedHealth: +14.18% MTD

And it’s not alone, In fact, since the official launch of our AI-powered strategies for US stocks in November 2023, our tech strategy is up by a potentially life-changing 119.15%. That’s an 80% outperformance over the S&P 500 during the same period.

And ProPicks AI doesn’t only pick stock in the US. Globally, the models have been able to maintain the same market-beating performance. See some examples for this month.

• Mid Cap Movers: +6.9% vs. S&P Mid Cap 400 +2.78%
• Tech Titans: +6.7% vs. S&P 500 3.70%
• Italian Market Elite: +6.4% vs. FTSE Italia All Share +6.52%
• Spanish Market Leaders: +7.4% vs. IBEX 35 +8.34%

Below is more relevant data on ProPicks AI:

• 398 stocks are in profit with an average of 6.11%
• This results in a hit rate of 64.72%
• But the winners are not only in the majority, they also outperform the losers by 48.85%
• 64 stocks have made it over the 10% mark - an average of 16.6%
• 28 strategies are up
• The top strategy has risen by 7.4%, while the highest outperformance is 4.1%

In the longer-term, the outperformance is even greater:

• 34 strategies have already posted a profit in 2025
• This results in a hit rate of 94.44%
• 24 strategies show a profit of over 10% - an average of 23.0%
• 12 strategies have even made the leap over 20% - an average of 32.13%
• 25 strategies (69.44%) beat their benchmark indices by an average of 7.59%
• The 11 underperformers lagged behind their benchmark indices by only -4.85%
• The top strategy records a gain of 44.93% and beats the benchmark index by 22.49

But how does the AI stock picker actually work?

At the start of each month, our AI refreshes each strategy with up to 20 stock picks. These selections are based on a blend of more than 150 well-established financial models compiled by our machine learning model on over 15 years of financial data worldwide.

Some stocks are added, others retained, and a few are removed, reflecting how the model reassesses each company’s medium-term growth potential.

To track performance, each strategy uses equal weighting across all selected stocks. While you’re not required to follow that weighting exactly, it offers a consistent benchmark to evaluate how well the model identifies opportunities across the board.

At the end of the day, stock picking is still a game of probabilities. But the key isn’t just finding winners — it’s knowing when to move on from the ones that no longer stack up.

Since launch, the model has done just that — delivering more than a few standout success stories along the way.

As a matter of fact, our backtest suggests that going the long run is the surest path to long-term wealth generation.

Check out the 12-year outperformance of Tech Titans over the S&P 500 below:


This means a $100K principal in our strategy would have turned into an eye-popping $2,420,100.

Now is the perfect time to subscribe to InvestingPro and get up to 50% off during the summer sale.