1 Insurance Stock Embarrassing Its Competitors

This company seems to be constantly winning.

May 11, 2014 at 11:00AM

First quarter earnings for many insurers reflected big adjustments to two major outside changes to the insurance landscape: Obamacare and new Hepatitis C drugs.

Many insurers saw their individual insurance rolls swell as people signed up via Healthcare.gov or the various state exchange websites. Of course, those same insurers were hit with additional fees and taxes as Obamacare came fully online, so profitability took a bit of a hit.

The cost trend was due to a big increase in spending on hepatitis C medications coinciding with Gilead Sciences' (NASDAQ:GILD) release of Sovaldi to the general market starting late fourth quarter 2013. This took many insurers by surprise, with UnitedHealth Group's (NYSE:UNH) Dan Schumacher saying that hepatitis C spending was "a multiple of what we expected."

Only one of the diversified insurers really seemed adequately prepared for these trends: WellPoint (NYSE:ANTM). Management ran with conservative guidance, bet big on Obamacare, and controlled well for hepatitis C cost. In fact, management increased earnings guidance for 2014 despite also increasing their expectations for hepatitis C spend for the balance of the year by $100 million. Find out more in the video below, as Motley Fool health care analysts Michael Douglass and David Williamson take you through WellPoint's success and what this means for investors going forward.

Here's 1 stock that could even embarrass WellPoint
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

David Williamson owns shares of UnitedHealth Group. Michael Douglass has no position in any stocks mentioned. The Motley Fool recommends Gilead Sciences, UnitedHealth Group, and WellPoint. The Motley Fool owns shares of Gilead Sciences and WellPoint. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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