"Grab them while they're down" is one of Warren Buffett's favorite investment strategies. And boy, have some drugmakers have had a rough couple of months, spurring Buffett to jump right in.
Last quarter, Buffett's company, Berkshire Hathaway
The resulting drop in stock price has pushed Sanofi's shares to their own 52-week low. Berkshire increased its stake in Sanofi-Aventis substantially, buying 2.7 million shares in the quarter. That brings its total holding to roughly 3.5 million shares, worth $140 million at the end of the quarter -- still a relatively small stake of Sanofi's $107 billion market cap.
Berkshire also made one more health-care play during the quarter, more than quadrupling its stake in managed-care behemoth UnitedHealth Group
I would never suggest that you run out and buy these companies just because Berkshire did. However, Buffett's company's persistence in investing in these high-quality companies is a reason to investigate them further. I would liken checking Berkshire's SEC filings every quarter to setting up a stock screen; it may bring the good companies to the top of the list, but won't give you any more information about them.
Further value-priced Foolishness:
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- Color to the Numbers: Top Contratian Stocks
- 3 Overlooked Emerging Markets
Our newsletter teams have done their homework and picked Berkshire and UnitedHealth for both the Inside Value and Stock Advisor newsletters. Johnson and Johnson was picked by the Income Investor team. You can see why by trying these or any of our newsletters free for 30 days.