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UNH shareholders would disagree - I've made 10x on it. Net income is a poor metric here. It includes acquisition costs (and interest paid on debts for said acq
by wefarrell 6y ago
UNH shareholders would disagree - I've made 10x on it.
Net income is a poor metric here. It includes acquisition costs (and interest paid on debts for said acquisitions).
- lotsofpulp 6y agoNet income over a long period of time is appropriate in my opinion. They consistently hover around 5% for 15+ years. It’s a pretty competitive market. https://www.macrotrends.net/stocks/charts/UNH/unitedhealth-group/net-profit-margin https://www.macrotrends.net/stocks/charts/UNH/unitedhealth-g... I don’t see a lot of juice to squeeze in insurance companies in general.
- wefarrell 6y agoThey're using their profits to buy their competitors and downstream partners, which in UNH's case has allows their market cap to grow 10x in 10 years. The 5% that you quote is after those acquisitions (and taxes) and is not a true indicator of profit.