Buffett bullish on four drug companies, bearish on JPM, WFC


Berkshire Hathaway’s investment in healthcare is structured similarly to Buffett’s more than $6 billion bets in the four largest U.S. airlines.

In April, Buffett sold his company’s airline holdings, saying the pandemic had changed the industry and made its outlook too uncertain.

Buffett and his lieutenants’ other investment moves

During the third quarter, Berkshire also acquired a $276 million stake in wireless phone company T-Mobile US Inc.(NASDAQ: TMUS). This move is a hint that Berkshire Hathaway is confident that the 5G could drive economic growth.

Buffett’s conglomerate sold a $1.3 billion stake in Costco Wholesale Corp. (NASDAQ: COST) which benefited from the COVID-19 pandemic as people stocked up on groceries and home supplies.

Berkshire Hathaway also reduced its holdings in banks including JPMorgan Chase (NYSE: JPM) and Wells Fargo & Co. (NYSE: WFC).  Both banks have been facing regulatory scrutinies and were slapped with a number of substantial monetary penalties.

JPM Morgan Chase recently agreed to pay $25 million to resolve the allegations by the Office of the Comptroller of the Currency (OCC) that its risk management and internal controls were deficient. It also agreed to pay $920 million to resolve charges that its traders practiced spoofing to manipulate the precious metals and Treasury securities markets.