Berkshire Hathaway Bets Big on Big Pharma

Berkshire Hathaway’s recent position signals a bullish turn for famed investor Warren Buffett.



Warren Buffett’s Berkshire Hathaway has begun investing in stocks of industry leaders in the pharmaceutical sector, a regulatory filing revealed on Monday. The four major drugmakers are Pfizer, Merck, AbbVie, and Bristol-Myers Squibb.

According to a regulatory filing details, Berkshire Hathaway’s U.S.-listed stock holdings as of September 30, the massive holdings company disclosed $5.7 billion of new healthcare stakes, including more than $1.8 billion each in AbbVie, Bristol-Myers Squibb, Merck and $136 million in Pfizer.

Shares of the Big Pharma players rose in the after-hours trading.

Warren Buffett: “Go big or go home?”

According to the regulatory filing, Berkshire Hathaway has made several substantial changes to its portfolio. It added a $280 million stake in wireless phone company T-Mobile, and increased its General Motors Co. and Kroger Holdings. Surprisingly, the famed holdings company trimmed its position in Apple – which was by far the biggest holding – by about 3.7% or 36 million shares.

Warren Buffett Berkshire Hathaway Big Pharma healthcare Stakes

Warren Buffett, chairman and CEO of Berkshire Hathaway
(Editorial credit: Kent Sievers / Shutterstock.com)

Berkshire Hathaway also cut down on its stake in JPMorgan by more than 95%, from around 22 million shares worth over $2 billion by the end of June to less than 1 million. In addition, it sold Wells Fargo shares and excited a position in Costco Wholesale Corp. that was worth over $1.3 billion at the end of the second quarter. It has also cut its Barrick Gold position by more than 40%, despite only investing in the gold miner for the first time in the second quarter. It also reduced its holdings in PNC and M&T Bank.

Furthermore, Berkshire announced $19 billion worth of investment in the last quarter. It increased stake in Bank of America by spending more than $2 billion. Its other new investments include 5% stakes in five Japanese trading companies in the past twelve months, inking deals with Scripps and Dominion Energy.

Berkshire Hathaway’s recent position signals a bullish turn for famed investor Warren Buffett. The massive holdings company also sold its entire stakes in four major U.S. airlines at a loss in Q2 2020.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Amazon to hire a crypto lead, may soon accept payments in cryptocurrency

Amazon to hire a crypto lead, may soon accept payments in cryptocurrency

The product lead will develop the full marketing strategy from customer experience to technical development to launching it.
16 hours ago
Billionaire CEO Elon Musk Shares the Brutal Truth about Life as an Entrepreneur

Billionaire CEO Elon Musk Shares the Brutal Truth about Life as an Entrepreneur

“I would say I’ve had some pretty tough life experiences and Tesla’s probably responsible for two-thirds of all personal and professional pain combined, to give you a sense o
2 days ago
AT&T, Airbnb & UPS among firms to face Akamai’s global outage

AT&T, Airbnb & UPS among firms to face Akamai’s global outage

Global outage causes Akamai Technologies to re-think cyber securities.
4 days ago
GameStop undergoing complete makeover under new chief

GameStop undergoing complete makeover under new chief

GameStop is undergoing a complete revival under new CEO.
4 days ago
Hotel Industry in Japan Grappling with a Wave of Room Cancellations amidst ‘No-Fun’ Olympics

Hotel Industry in Japan Grappling with a Wave of Room Cancellations amidst ‘No-Fun’ Olympics

Hotel room cancellations face a one million challenge after Olympics face troubles in deciding 2020 sessions.
5 days ago
Tokyo Games organizing Committee head says cancellation of Olympics 2020 quite possible

Tokyo Games organizing Committee head says cancellation of Olympics 2020 quite possible

Tokyo Olympic Games 2021 face cancellation threat due to the rising number of Covid-19 cases, says organizing committee head.
5 days ago