Warren Buffett’s Berkshire Hathaway bets on pharma, slash bank stocks
The legendary investor and master of value investing Warren Buffett’s Berkshire Hathaway have added stocks of several pharma companies to its portfolio during the third quarter.
Meanwhile, Buffett’s Berkshire Hathaway has trimmed its positions in bank stocks amid lower interest rates and bleak fundamentals. The firm has sold its stake in Wells Fargo, JPMorgan Chase, PNC Financial, and M&T Bank. Banks are among the worst performers this year amid zero range interest rate policy and users move towards online platforms.
Warren Buffett’s Berkshire Hathaway added Pharma stocks
Berkshire Hathaway has started showing confidence in pharma companies at a time when the world is struggling with a pandemic and the US has observed a big political change.
The hedge fund has bought new shares in pharmaceutical companies AbbVie, Merck, and Bristol-Myers Squibb during the September quarter. The firm has also bought the shares of Pfizer that has recently discovered coronavirus vaccine. The company says they are in a position to supply billions of doses in the next fiscal year.
Berkshire Hathaway slashes bank stocks
Berkshire Hathaway had exited all of its positions in the US airlines during the June quarter amid the bleak future fundamentals. This quarter, the Oracle of Omaha has sold banking stocks.
Warren Buffett was among the investors who like to invest in banking stocks over the decades. However, the firm has changed its previous trend as it has started moving money towards growth stocks.
Warren Buffett’s Berkshire Hathaway has reduced its stake in several banking stocks during the third quarter as banks have been encountering market uncertainty and massive provisional losses.
The Dow Jones US banks index, which measures the performance of US banks, is down 25% year to date. The market analysts believe banks are likely to remain under pressure in the days ahead.