"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
Sanofi-Aventis
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.
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Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. The Fool's disclosure policy just says no -- except to smart investments.