In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser and Motley Fool Stock Advisor analyst Brendan Mathews take a question from a reader who asks: "Many pharma companies went down 30 to 40%. Is it good time to buy pharma stocks? Can you give some good picks on pharma?"
Brendan says he isn't necessarily a fan of the pharmaceutical industry. Picking winners can be very difficult for individual investors, and Warren Buffett has suggested buying a basket in the past (as opposed to individual stocks). However, Brendan does like Valeant Pharmaceutical (NYSE:BHC), which has a very atypical business model. Instead of relying on risky research spending to develop new products, the company grows by acquiring existing products and companies. The company has a great management team and track record. Jason agrees it's a tricky industry, particularly with smaller companies.
Brendan Mathews owns shares of Valeant Pharmaceuticals. Jason Moser has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Valeant Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.