Warren Buffett's Berkshire Bets On These Four Drugmakers Amid Pandemic

Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) Chairman Warren Buffett has invested in four large drugmakers as the world faces yet another wave of the raging COVID-19 pandemic.

What Happened: Regulatory filings made with the United States Securities and Exchange Commission reveal that the legendary investor picked up shares worth nearly $136 million in drugmaker Pfizer Inc PFE in the latest quarter. 

Interim results show that Pfizer’s vaccine is 90% effective against COVID-19.  

The sage of Omaha also initiated positions worth more than $1.8 billion each in AbbVie Inc ABBV, Bristol-Myers Squibb Co BMY, and Merck & Co, Inc MRK, as per the SEC filings. 

Why It Matters: The shares of the four drugmakers traded higher in the after-hours session on Monday with AbbVie up 1.67% at $100, Merck rising 1.58% to $81.45 and Bristol-Myers gaining 2.82%. Pfizer appreciated 0.99% in the after-hours to $37.70. 

Buffett is known to handle large investments for Berkshire's $245.3 billion portfolio himself, and the investments can be seen an indicator as to where Buffett and his portfolio managers Todd Combs and Ted Weschler see value, Reuters noted earlier. 

The veteran investor is known to use a disciplined strategy that centers around maximizing gains limiting risks. 

The favorite holding period of the Berkshire chairman is “forever.” Some of the stocks he favors include Coca-Cola Co KO and Apple Inc AAPL. At the beginning of the pandemic this year in April, Buffett jettisoned his airline stocks.

Price Action: On Monday, Berkshire Hathaway Class A shares traded 2.28% higher at $349,540, while the company’s Class B shares closed 2.5% higher at $233.10.

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