Berkshire Hathaway’s $1 billion homebuilding investment indicates Warren Buffett’s confidence in a future U.S. housing market rebound.

Buffett owned UnitedHealth shares before selling his stake in 2010, though his Berkshire Hathaway recently acquired shares.

Berkshire Hathaway revealed four new investments Thursday in steelmaker Nucor, insurer UnitedHealth and two of the nation’s biggest homebuilders — Lennar and DR Horton — but only one of the investments was big enough to ensure that legendary investor Warren Buffett may have handled them.

Warren Buffett's modus operandi is to wait for price dislocations to present themselves. In a historically pricey stock market, locating value has been virtually impossible. Yet, with UnitedHealth Group stock losing more than half its value since the midpoint of April, a rare price dislocation has emerged.

On Friday, high-profile investors Michael Burry and Warren Buffett took positions in UnitedHealth Group Inc. (NYSE:UNH). Warren Buffett's fund bought little more than 5 million shares, and Burry disclosed in 13F filings that he purchased call contracts against 350,

(Reuters) -Warren Buffett's Berkshire Hathaway disclosed on Thursday that it has begun investing in UnitedHealth Group after the insurer became a target for many Americans upset over the direction of the nation's healthcare. Berkshire said it owned 5.04 million UnitedHealth shares worth about $1.57 billion as of June 30.

UnitedHealth was a star stock late last week, when it was revealed that Warren Buffett's Berkshire Hathaway had taken a $1.6 billion stake in the company's equity. On Monday, lingering positive sentiment on UnitedHealth was boosted by that price target bump.