Johnson & Johnson
In July, J&J took an 18.4% stake in Elan
I like both moves. Elan was fairly desperate for cash, allowing Johnson & Johnson to get a good deal. And while vaccines may not be sexy, they are a nice moneymaker for pharmaceutical companies. Crucell was being courted by Wyeth earlier this year, until it broke off talks when Pfizer
Johnson & Johnson isn't the only drug company taking stakes in smaller partners: Novartis
But what makes Johnson & Johnson so much like Buffett is the value-investing mentality. Last year, for instance, it picked up both Mentor and Omrix Biopharmaceuticals after investors had cast them off.
As Johnson & Johnson continues to generate free cash flow every quarter, I expect it'll maintain the tradition of stellar acquisitions and equity investments.
Of course, Buffett owns shares of J&J, so perhaps we should just call Berkshire Hathaway the Berkshire of health care -- even if Buffett doesn't care about the details of the industry.