Warren Buffett is bullish on stocks again, bets big on pharma space
According to exchange filings, Berkshire Hathaway picked up pharma companies such as AbbVie Inc, Bristol-Myers Squibb Co, Merck & Co and Pfizer Inc in the third quarter of 2020
November 24, 2020 / 07:53 AM IST
After selling nearly $13 billion worth of shares since the COVID-19 pandemic broke out, billionaire investor Warren Buffett is once again back at what he does best - buying stocks.
The CEO and Chairman of Berkshire Hathaway, often regarded as one of the biggest and the most successful investors in the world, bought shares worth $4.8 billion in the third quarter of 2020 and spend another $9 billion buying up its own shares.
According to exchange filings, Berkshire Hathaway picked up pharma companies such as AbbVie Inc, Bristol-Myers Squibb Co, Merck & Co and Pfizer Inc during the period.
The disclosure of Berkshire’s Pfizer holding, which is valued at nearly $138 million, comes a week after the drugmaker announced that its COVID-19 vaccine has been more than 90 percent effective in preventing cases of the virus. However, Bloomberg reported that Buffett's pharma bets aren’t entirely vaccine-related, and the Oracle of Omaha may be looking at the broader value in the pharma space.
The conglomerate also increased its stake in T-Mobile US Inc, as the largest wireless network operator is heading into 5G, and Snowflake Inc, one of the hottest tech IPOs of the year.
Additionally, Berkshire repurchased more than $2.5 billion in Class A shares and about $6.7 billion in Class B stock during the third quarter. The total buybacks made by Berkshire now stand at $15.7 billion as on September 30, 2020.
Despite the record buybacks this year, Berkshire Hathaway still has a cash pile of $145.7 billion at the end of the third quarter. It also thinned its banking portfolio by reducing stake in JPMorgan Chase & Co, Wells Fargo & Co, PNC Financial Services Group, and Costco Wholesale Corp during the period.