The S&P 500’s somehow holding its position just below a record high of 7,620 points, despite AI jitters and a weak US jobs report. Since 14 May, it’s made almost no movement.

In this week’s report, US non‑farm payrolls rose by just 57,000 in June, well below the roughly 113,000 economists had expected. But with further rate hikes now less likely, markets enjoyed some mild growth.

What does this mean for investors? To answer that question, I decided to consult the advice of America’s most famous investor, Warren Buffett.

A climate of fear

The billionaire investor built Berkshire Hathaway into one of the world’s most successful companies over more than 50 years. His most famous insight about markets is simple:

“A climate of fear is your friend when investing; a euphoric world is your enemy.”

That line feels very relevant right now. AI stocks have been all over the place, with huge gains turned into sharp pullbacks. At the same time, the weak jobs data has sparked fears of a slowing economy. Yet the S&P 500’s held its ground.

Buffett’s point is that volatility often creates opportunity. When others panic, disciplined investors can buy quality businesses at better prices. The question is, which businesses?

Stay the course

Some of Berkshire’s more notable recent investments include Occidental Petroleum, Constellation Brands and UnitedHealth Group (NYSE: UNH).

UnitedHealth looks particularly attractive in the current landscape. As a healthcare insurer, its earnings are far less tied to the economic cycle than banks, energy, or consumer discretionary stocks. That makes it more defensive when growth slows.

The company’s first-quarter report listed the following:

• Adjusted earnings of $7.23 per share.
• Revenue of $111.7bn, up 2% from $109.6bn a year earlier.
• 2026 earnings guidance raised to $18.25 per share (up from above $17.75).

In late June, Bank of America raised its price target on UnitedHealth from $450 to $475, while maintaining a Buy rating on the shares. Currently trading around $425, the shares are already up 26.4% this year.

But there are risks. Policy and regulatory changes in US healthcare could pressure margins, and medical cost inflation is an ever-present concern. With the shares having already achieved decent gains after the Q1 beat, it needs to keep hitting higher targets or risk disappointing investors.  

Final thoughts

In the current mix of soft jobs, steady S&P 500, and rate‑cut expectations, Buffett would likely focus on defensive, cash‑rich franchises.

That’s why health insurers such as UnitedHealth deserve a closer look. With strong fundamentals and a raised earnings outlook, the stock looks compelling for long‑term growth investors – even if there’s a bit of volatility risk.

The UK doesn’t have any health insurers of that scale due to the NHS, so the closest LSE-listed options would be GSK or AstraZeneca. Both benefit from similar defensive qualities, with GSK offering the added advantage of a 4.8% dividend yield.

Of course, UnitedHealth’s just one example to consider here — it’s not the only stock of its kind. In both the US and UK, there’s a wealth of other defensive plays that fit Buffett’s playbook.

Should you invest £5,000 in UnitedHealth Group right now?

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Mark Hartley owns shares in GSK and AstraZeneca.