Warren Buffett’s Berkshire Hathaway has made waves with a $1.6 billion investment in UnitedHealth, sending the insurer’s shares soaring 12% after-hours. The move, one of Buffett’s final major decisions before transitioning leadership, underscores his enduring market influence. Yet paradoxically, longtime disciples are losing faith in Berkshire itself. A prominent investment firm, historically aligned with Buffett’s value principles, significantly reduced its Berkshire holdings—a rare departure signaling growing skepticism about the conglomerate’s post-Buffett trajectory. Meanwhile, Berkshire continues deploying capital aggressively, with a mysterious $4.7 billion position—potentially in defense or industrial sectors—still under wraps.
The Buffett Effect vs. Shifting Loyalties
While UnitedHealth’s rally exemplifies the "Buffett effect," where his endorsements instantly buoy stocks, the divergence among loyalists highlights brewing uncertainty. Analysts note the incoming leadership faces pressure to uphold Buffett’s legacy while navigating evolving market dynamics. The UnitedHealth bet, seen as a classic Buffett play for undervalued quality, offers reassurance—but the simultaneous exodus of once-steadfast investors suggests even legends aren’t immune to scrutiny during transitions.
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