$Unitedhealth(UNH.US) is a good opportunity to start building a position

1. Why is UnitedHealth widely considered a "high-quality stock"?

1. Strong moat and market position:

· UnitedHealth is the largest health insurance company in the U.S. (through UnitedHealthcare) and a leading healthcare services company (through Optum).

· The Optum business is its true core competency, divided into three parts: data and analytics, pharmacy benefit management, and direct healthcare services. This forms a powerful vertically integrated ecosystem that can control costs while creating new revenue streams, making it difficult for competitors to replicate.

2. Outstanding financial performance:

· Stable revenue and profit growth: Over the long term, even during the pandemic, revenue and adjusted EPS have maintained steady growth.

· Strong cash flow: The company generates massive free cash flow, a key indicator of financial health and the ability to reward shareholders.

· High shareholder returns: Consistent stock buybacks and dividend increases, with an excellent dividend growth record.

3. Exceptional management:

· Its management team (especially long-time CEO Andrew Witty) is known for efficiency, innovation, and capital allocation skills, earning respect from Wall Street and even Warren Buffett himself (though Berkshire has exited its position, Buffett has publicly praised Witty multiple times).

4. Solid industry fundamentals:

· Inelastic demand: Healthcare is a basic need, unaffected by economic cycles.

· Long-term trends: Aging populations, rising healthcare costs, and the application of data and technology in healthcare provide long-term growth drivers for the company.