When Warren Buffett makes a move, people notice.

Recently, he added shares of UnitedHealthcare to Berkshire Hathaway’s portfolio. Here’s the question everyone’s asking: Should you follow him?

The Temptation to Follow the Oracle

It’s hard not to feel the pull. Buffett has been called the greatest investor of all time, and when he buys, many assume it’s a sure thing.

Imagine the confidence of being able to buy millions of dollars’ worth of stock in a single company and wait years — even decades — for it to pay off. That’s Buffett’s world.

But for most investors, that approach doesn’t work the same way.

The Danger of Single-Stock Investing

Buying individual stocks may sound exciting, but it carries risks that many people underestimate.

When you put money into one company, you’re exposed to single security risk — the possibility that your returns live and die with that one company’s performance.

A real example: Buffett also bought shares of Occidental Petroleum. At one point, the stock dipped and if you had bought at the wrong time and needed the money in the short term, you might have felt forced to sell at a loss. Buffett? He can afford to wait.

Most families and retirees don’t have the luxury of waiting 10 or 20 years to see if a stock recovers. They need money available sooner, whether it’s to cover living expenses, healthcare, or unexpected life events.

That’s why single-stock investing can be so dangerous.

Why Diversification Matters

At Clarity Wealth, we think about investing differently.

Instead of betting on one company, we build portfolios designed to spread out risk. That means including a mix of investments — from exchange-traded funds (ETFs) and mutual funds to bonds and other asset classes.

This way, your financial future doesn’t hinge on the success of a single company’s CEO or quarterly earnings report.

The goal isn’t just growth — it’s balance. It’s about pursuing returns while minimizing risk, so you don’t find yourself panicking when markets get volatile.

Because let’s be honest: chasing “hot stock tips” almost always feels good in the moment but often creates regret later.

Buffett’s Advantage vs. Your Reality

Buffett’s situation is unique.

• He invests billions, giving him access to opportunities ordinary investors don’t have.
• He doesn’t need liquidity; his personal expenses are already covered.
• He can ride out market downturns for decades without worrying about cash flow.

Most families and retirees don’t have that advantage. You can’t model your investing entirely after Buffett because your needs are different.

And that’s okay — because you don’t need to.

The key is having an investment plan that’s designed for your life, your goals, and your timeline.

A Smarter Approach for Everyday Investors

So, what should you do with all this?

Start by asking yourself some honest questions:

• How much risk can I actually tolerate?
• Do I have the time horizon to wait out downturns?
• Am I relying on this money for income in the near future?

If you’re not sure of the answers, that’s where planning comes in.

A well-built investment plan takes into account not just your appetite for risk but your entire financial picture — from taxes to retirement goals to estate planning. It creates a roadmap that lets you feel confident no matter what the markets (or Warren Buffett) are doing.

The Takeaway

Buffett’s UnitedHealthcare purchase may be a great move for him. But that doesn’t mean it’s a great move for you.

You don’t need to gamble on single stocks to build wealth. You need a strategy that fits your values, aligns with your timeline, and protects your family from unnecessary risk.

That’s the kind of planning we do every day.

Because building wealth isn’t about copying Warren Buffett — it’s about finding the strategy that works for you.