Berkshire Hathaway recently initiated a position in UnitedHealth Group stock. Shares of UnitedHealth have plummeted by roughly 40% this year. Despite some turbulence, its business boasts several attributes that Buffett seeks.

Berkshire Hathaway’s $1 billion homebuilding investment indicates Warren Buffett’s confidence in a future U.S. housing market rebound.

The billionaire’s Berkshire Hathaway investment group has firmly outpaced the S&P 500 over the past five years, and has delivered staggering returns since he began converting it from a textile company into an acquisition machine in the mid-1960s.