This investment signifies Buffett's re-entry into UNH after liquidating his entire position back in 2010, indicating that he perceives significant value at

The health insurer has been facing multiple headwinds this year and a turnaround may not happen quick for the stock.

So while we should always try to assess where a stock or sector is headed, the better way to trade is with a simple framework: Any stock can go up and thus be a source of profits. However, owning each stock comes with different levels of risk,