Warren Buffett’s Berkshire Hathaway Inc. is betting on big pharma as the industry’s fortunes swing on the development of a Covid-19 vaccine and therapeutics.
Berkshire disclosed new investments in Merck & Co. and Pfizer Inc. during the third quarter, while also adding bets on AbbVie Inc. and Bristol-Myers Squibb Co., according to a regulatory filing Monday. Meanwhile, Buffett’s conglomerate continued to cut stakes in financial companies, including Wells Fargo & Co. and JPMorgan Chase & Co.
Berkshire started snapping up the health stocks just months ahead of a disclosure from Pfizer and BioNTech SE that their vaccine protects most people from Covid-19, news that sent Pfizer stock soaring. Merck has also been pushing ahead with therapies for the virus.
The bets give Berkshire more exposure to pharmaceutical companies as officials prepare to ramp up efforts to distribute a Covid-19 vaccine whenever one is approved. Buffett’s company had stakes valued … Read More