Warren Buffett CEO of Berkshire Hathaway considered one of the most successful investors in the world.
Warren Buffett and his team of investors unveiled their latest acquisitions on Monday, including four pharmaceutical companies: AbbVie (NYSE: ABBV), Merck, Bristol-Myers (NYSE: BMY) and Pfizer (NYSE: PFE). In the first three cases, it has revealed a similar investment close to 1.8 billion dollars, while, in the case of Pfizer, the investment was substantially lower, reaching 136 million.
The investment in these 4 members, however, is unrelated. Although Pfizer is now on everyone’s lips for its advances in the vaccine that could end the coronavirus pandemic, it has a very diversified business, the same as Merck, now focused on the development of cardiovascular drugs or focused on the female public. He is very dedicated to cancer, as is the case with Bristol Myers, which expanded its cancer treatment business with the purchase of Celgene (NASDAQ: CELG) last year. AbbVie, for its part, wants to branch out so as not to rely so heavily on Humira, its treatment for a number of inflammatory disorders. At the beginning of the year, it closed the acquisition of Allergan (NYSE: AGN), in the field of dermatology.
Of course, they remind us from The Motley Fool that, at the same time, these 4 companies do have something in common: the 4 are trading far from their all-time highs and have been this way throughout 2020, which suggests that Buffett would have taken the opportunity to go on “sales.”
On the contrary, it has reduced its positions in Barrick Gold (NYSE: GOLD), Costco (NASDAQ: COST) and also in some banks such as Wells Fargo (NYSE: WFC), JPMorgan (NYSE: JPM) or M&T Bank.