The sector I started accumulating in the spring of 2025 was U.S. health insurance.
At the time, sentiment couldn't have been much worse. The market was reacting to policy changes introduced by the new U.S. administration, uncertainty around healthcare funding, Medicare Advantage reimbursement, and fears of tighter regulation. The entire sector was under pressure, and many investors wanted nothing to do with it.
Instead of avoiding the sector, I started building positions in some of the big names such as UNH, CNC, CVS, HUM, ELV..
Part of my conviction comes from something a little more personal.
My auntie moved to Hawaii in 2000s, where she has worked as a physician ever since. Over the years, we've spent countless evenings discussing how the U.S. healthcare system actually works—not just from an investor's perspective, but from the perspective of someone who treats patients every day. It is a business over there.
Those conversations helped me appreciate just how complex the American healthcare system is, constantly evolving, highly political, far from perfect. But one thing became increasingly clear to me: regardless of who occupies the White House or how reimbursement rules change, the demand for healthcare isn't going away.
That perspective gave me the confidence to invest when sentiment was at its weakest.
Healthcare demand doesn't disappear because politicians change reimbursement formulas. The U.S. population continues to age, chronic diseases continue to increase, and millions of Americans will continue to rely on health insurers and healthcare providers regardless of the political cycle.
Of course, reimbursement rates can change. Margins can come under pressure. Earnings estimates may be revised, sometimes significantly. But these companies have navigated regulatory changes for decades. Political cycles come and go, while businesses adapt.
The market often prices in the worst possible outcome long before it becomes reality. That's exactly the type of situation where I prefer to think long-term rather than react to short-term headlines.
When high-quality companies trade at depressed valuations because of temporary uncertainty, I believe opportunities are created.
Sometimes the best investments are made when an entire sector becomes unpopular—not because the businesses are broken, but because fear temporarily outweighs fundamentals.
By the way, healthcare is free in Slovakia, the country where I was born and raised. Stay healthy, and keep investing! 😊
I'm Dodulik, and I've averaged an annual return of over 28% over the past seven years.
$CNC$UNH$HUM... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
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