Oracle Omaha bought some shares.
Each quarter, fund managers who control assets of $ 100 million or more must publicly report their holdings to the U.S. Securities and Exchange Commission on Form 13-F. A 13-F deposit gives investors a behind-the-scenes look at some of the richest and most successful hedge funds in the world. Quarterly filings from Wall Street legend and CEO Berkshire Hathaway (BRK.A, BRK.B) Warren Buffett remain among the most anticipated. Buffett announced last week that he had bought nine different stocks in the last quarter. Here are the latest Buffett stocks to buy.
AbbVie (Code: ABBV)
AbbVie was one of many new healthcare stocks Buffett began buying in the third quarter of 2020, and he added most of those positions in the fourth quarter as well. Buffett may be betting that the healthcare industry will get a boost from the Joe Biden administration and the Democratic-controlled Congress. AbbVie is a global pharmaceutical company and the pioneer of the drugs Humira and Imbruvica. AbbVie is a Buffett model stock that only trades 7.6 times future earnings and pays a dividend of 4.95%. Buffett’s stake in AbbVie is now roughly $ 2.7 billion.
Merck is another healthcare stock that Buffett bought in the third quarter and continued to buy in the fourth quarter. The global pharmaceutical company owns the successful cancer drug Keytruda, which was patented until 2028 and has already been approved for more than 20 indicators. Merck is also testing other potential indicators such as breast and colon cancer. Merck’s diversified product portfolio generated a net profit of $ 7 billion in 2020. The company will not lose the exclusivity of one of its major brands until at least 2022. Buffett’s stake in Merck is now up by $ 2.1 billion.
Bristol-Myers Squibb (BMY)
Bristol-Myers Squibb is another healthier tier 1 stock and is typical of Buffett’s long-term approach to value investing. The company has a long history of acquisitions, including the $ 74 billion acquisition of Celgene in 2019. Celgene owns a large group of cancer drugs that have some of the highest margins in the pharmaceutical industry historically. Bristol-Myers has six promising drugs in the pipeline that could help mitigate the decline in Revlimid sales once the general competitors hit the market in 2022. Bristol-Myers is trading with only 7.5 times earnings in the end and pays a 3.2% dividend. Buffett’s stake in BMY shares is now roughly $ 2 billion.
After merging with Sprint, T-Mobile is now the second-largest wireless operator in the United States, with over 100 million customers. Warren Buffett appears to be rooting for the prospects for 5G telecom stocks as companies continue to roll out updated 5G networks. Thanks to Sprint’s merger, T-Mobile managed to achieve 71% sales growth in the most recent quarter. Much like healthcare stocks, Buffett took a brand new position at T-Mobile in the third quarter and added that position in the fourth quarter. Buffett’s stake in T-Mobile is now roughly $ 617 million.