Why I’m Holding UnitedHealth: A 9-to-5 Investor’s Perspective

A Steady Hand in a Fast Market

Building wealth as a 9-to-5 investor isn’t about chasing momentum. It’s about owning durable businesses that compound quietly while you’re busy working your day job. For me, UnitedHealth Group $UNH ( ▲ 0.82% ) has been that steady anchor, a company that wobbles occasionally but keeps creating value beneath the noise.

After rising through 2024, stumbling mid-2025, and stabilising again, the long-term story remains intact. Below is my structured view on why I continue to hold UNH, along with the key reasons someone might buy or sell from here.

Why I’m Still Holding

Defensive anchor in a growth-heavy portfolio
It offsets volatility from higher-beta tech names I own.

Compounding without maintenance
Dividends and buybacks do the work in the background, no micromanagement needed.

Integration story still unfolding
Optum’s full earnings potential will take years, not quarters, to realise.

Short-term turbulence ≠ broken thesis
Margins fluctuate, but the business model remains profitable and strategically sound.

Long horizon > loud headlines
This is a compounder designed for patience, not momentum trades.

Reasons to Buy UNH

Healthcare resilience
Healthcare demand doesn’t vanish in a downturn. UNH provides stability when cyclical stocks falter.

Integrated business moat
Its two-engine model UnitedHealthcare (insurance) and Optum (healthcare services and tech) creates data scale and cross-business efficiencies that few competitors can match.

Cash-fuelled dividends
Consistent free cash flow generation supports dividend growth, providing long-term income visibility.

Demographic tailwinds
An ageing U.S. population means more enrolments and consistent utilisation growth.

Potential for recovery re-rating
If medical cost pressures normalise, the stock’s valuation could rebound meaningfully from current levels.

Reasons to Sell or Reduce UNH

Elevated medical cost inflation
If claim costs stay stubbornly high, profit margins could erode.

Regulatory headwinds
Tighter Medicare Advantage oversight or reimbursement adjustments could weigh on earnings.

Limited near-term upside
With valuation fair and growth moderate, investors may rotate toward faster-growing sectors.

Execution risk in Optum scaling
Integration missteps would compress margins and dull the long-term appeal.

Portfolio concentration
If healthcare exposure grows too large, trimming could rebalance risk.

These factors are worth watching. A sustained decline in profitability or regulatory clarity would challenge the thesis.

Bull, Base, and Bear Scenarios

Key metrics to track each quarter:

• Medical Care Ratio (MCR)

• Optum segment growth and margins

• Medicare Advantage reimbursement trends

• Updated company guidance

My Positioning

UNH remains a long-term holding. It fits the priorities of a part-time investor managing wealth alongside a full-time job:

• Minimal time commitment

• Consistent cash generation

• Lower volatility than tech peers

• Structural demographic demand

I’m not adding aggressively today. The next leg of upside depends on earnings execution. But I’m not selling either. The fundamentals remain strong, the moat remains wide, and the compounding engine keeps running quietly in the background.

Sometimes the smartest move in investing is simply not moving.

Disclaimer: This publication is for general information and educational purposes only and should not be taken as investment advice. It does not take into account your individual circumstances or objectives. Nothing here constitutes a recommendation to buy, sell, or hold any investment. Past performance is not a reliable indicator of future results. Always do your own research or consult a qualified financial adviser before making investment decisions. Capital is at risk.