Berkshire Hathaway continues to shape markets, even without Warren Buffett at the helm. UnitedHealth shares fell 2.1% in early trading on Monday after Berkshire’s 13-F filing revealed it sold all its shares in the health insurer during the first quarter. This move highlights Berkshire’s new direction under CEO Greg Abel and shows the Buffett effect still moves stocks.
Last year, Berkshire bought about 5 million UnitedHealth shares during a big drop in the stock. The company sold these shares in the first quarter after Greg Abel became CEO, following Warren Buffett’s move to the role of chairman. According to Barron’s, Berkshire appears to have sold almost all the stocks managed by former portfolio manager Todd Combs, and UnitedHealth was likely one of them. Looking back, the timing was unfortunate. UnitedHealth dropped 18% in the first quarter but then jumped 46% by the end of the second quarter.
The same filing that sent UnitedHealth down also boosted other stocks. Berkshire’s new $3 billion investment in Delta Air Lines lifted Delta’s shares by 1.7% in early trading. A smaller investment in Macy’s pushed those shares up 1.6%. Berkshire also increased its Alphabet stake, but Alphabet shares rose little on Monday, having already gained 38% from April to Friday.
The market’s response shows that Berkshire’s portfolio updates still have the power to move individual stocks, no matter who the CEO is.
