Warren Buffett's Two Pure Play Pharma Picks Are Real Head-Scratchers
Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is widely considered to be the greatest investor to ever walk the planet. His unparalleled investing acumen transformed early Berkshire Hathaway shareholders into multi-millionaires many times over. Buffett's core strategy boils down to spotting underappreciated businesses that sport well-established competitive advantages over their peers, and then letting time do the heavy lifting. This tried-and-true value investing strategy has made Buffett a staggering $90.2 billion in net worth, a figure that doesn't include his generous donations to various charities such as the Bill and Melinda Gates Foundation.
Not all of Buffett's stock picks have panned out, however. What's more, the Oracle of Omaha has also, on more than one occasion, bought companies without a clear-cut competitive moat, or even decent near-term growth prospects. Berkshire Hathaway's deep dive into the pharmaceutical space with the purchase of biotech heavyweight Biogen Inc. (NASDAQ: BIIB) toward the tail end of 2019 and its sizable stake in struggling generic drug king Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) back in 2017 are two prime examples. Are these head-scratching stock picks actually worthwhile contrarian buys? Let's break down the near-term outlook of each of these pharma titans to find out.
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Source Fool.com
