Warren Buffett It is clear to him with the pharmaceutical companies involved in the fight against the coronavirus. After getting rid of his positions at Pfizer at the end of 2020 despite having entered the United States that same year in the heat of the anti-Covid vaccine and now it seems that the turn has come to Merck.
Berkshire Hathaway, a company led by the ‘Oracle of Omaha’, has reduced positions for the second consecutive quarter in the German pharmaceutical company, according to the company’s results report for the third quarter.
Berkshire Hathaway’s current position at Merck is now 0.36 percent with a current market price of about $ 757 million, according to the share register it compiles Bloomberg.
Buffett acts firmly on the health sector: either cut or sell
The movements reflect that Buffett is indifferent to the arrival of the third booster dose of the coronavirus vaccine, in the case of Pfizer, or Merck’s success with its anti-Covid pill, a goal that Pfizer itself also pursues.
Of course, the Wall Street guru has also reduced positions one more quarter in other companies in the health sector such as Abbbvie, born in the bosom of Abott Laboratories, O Bristol-Myers Squib, a leader in cancer treatments.
In addition, it has completely come out of Biogen, involved in the fight against Alzheimer’s or ALS, but whose last trial against ALS has not achieved the expected results and has drastically reduced her income forecasts with her drug against Alzheimer’s.
Organon, the drug that saves
What also remains unchanged for Buffett is his trio of investment stars as Bank of America, Apple and Coca Cola they remain seamlessly in the top three positions of your portfolio.
Of course, within the health sector it is saved from burning Organon. Buffett entered its capital stock in August and now controls 0.61 percent of the working capital valued at about $ 57 million from Berkshire Hathaway.
It is a biopharmaceutical spun off from Germany’s MerckThe company debuted in May of this year on Wall Street and accumulates a revaluation of more than 15 percent. It has a capitalization of $ 8.1 billion, with a potential greater than 10 percent, by trading above $ 36.6 and yielding an average price target of $ 40.38 for the next 12 months.
50 percent of analysts recommend “buy” Organon titles, by 40 percent who prefer to “hold” portfolio positions and 10 percent who urge to “sell” the shares.
The same reference shareholders as Merck
The company specializes in women’s health with contraceptive and fertility products. Based in the United States, he also works in the fields of psychiatry, hormone therapy, and anesthesia.
Behind Organon’s capital stock are investment entities that are used to occupying the noble zones of pharmaceutical and biotech companies. Thus, the largest shareholder is Vanguard with a position of 11.40 percent valued at 1,060 million euros.
They follow him Blackrock, position of 6.35 percent of working capital with a market price of 590 million dollars, and State Street, with 3.35 percent at a price of 311 million. Same reference shareholders and same positions in the shareholding as those of Merck, where Buffet has cut positions.
65 percent quarterly profit drop at Berkshire Hathaway
Berkshire Hathaway closed the first nine months of the year with a profit of 50,149 million dollars, eight times more than in the same period of the previous year and raised the turnover by 13 percent, to 204,296 million dollars.
Figures achieved despite profits falling 65 percent in the third quarter in year-on-year rate due to lower stock market gains, which could not offset the good records seen in the insurance, energy or infrastructure division.