The Oracle of Omaha just took a $1.6 billion stake in the battered healthcare giant, sending shares soaring 9% after hours.

While the "vote of confidence" from Buffett's investment validates the long-term value of UnitedHealth shares, the "management needs to regain trust and credibility with investors, and get back to its beat and raise reputation of the past," said James Harlow, senior vice president at Novare Capital Management.

The investment comes as UnitedHealth faces soaring medical costs, federal investigations, the fallout of the killing of a top executive and a cyberattack last year.

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Warren Buffett's Berkshire Hathaway built a $1.6 billion stake in UnitedHealth last quarter, marking one of its last wagers with the investor as CEO.

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