Warren Buffett is buying again, and pharma has tickled his fancy
Buffett probably sees broader value in the pharma space, which had been somewhat beaten down heading into the US election
Warren Buffett is a living, breathing billionaire, but he’s also a leading economic indicator. So after his Berkshire Hathaway dumped almost $13bn of stocks in the throes of the Covid-19 crisis, investors were beside themselves. They’ll now be quite relieved to see that his company is back in buying mode, making the biggest outlay for equity purchases in a year.
And he’s not just making oddball bets, like Japanese trading houses and, yikes, gold. A filing late on Monday showed that in the latest period Berkshire Hathaway bought a handful of US pharmaceutical giants: AbbVie, Bristol-Myers Squibb, Merck and Pfizer. It also purchased a new stake in T-Mobile US, the wireless carrier with the most enviable spectrum position heading into 5G, and Snowflake, one of the hottest tech IPOs of 2020...
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