Is Buffett Abandoning Health-Care Stocks?

Warren Buffett's Berkshire Hathaway (NYSE: BRK-B  ) just disclosed in a fourth-quarter filing that it has liquidated its position in big pharma stock GlaxoSmithKline (NYSE: GSK  ) . Does that mean Buffett is abandoning the health-care industry? Should investors follow the Oracle of Omaha's lead and dump their pharma and biotech holdings?

In one word: No!

Taking a closer look at the 13F filing reveals Berkshire has not abandoned the industry. It still has a $30 million position in Johnson & Johnson, and $210 million stake in Sanofi, and is the largest single shareholder of DaVita. Buffett aggressively accumulated shares in the dialysis service provider last year, which are currently valued at $2.3 billion.

In this segment of The Motley Fool's health care-focused investing show Market Checkup, analyst David Williamson discusses what Buffett's decision to dump Glaxo means, dives in to the remaining health care holdings in Berkshire's portfolio, and highlights different strategies investors can take to profit from Warren Buffett's investing acumen.

More wisdom from Warren Buffett
Warren Buffett has made billions through his investing and he wants you to be able to invest like him. Through the years, Buffett has offered up investing tips to shareholders of Berkshire Hathaway. Now you can tap into the best of Warren Buffett's wisdom in a new special report from The Motley Fool. Click here now for a free copy of this invaluable report.


Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

DocumentId: 2850047, ~/Articles/ArticleHandler.aspx, 7/23/2014 10:42:51 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement