FILE PHOTO: Warren Buffett, chairman and CEO of Berkshire Hathaway, takes his seat to speak at the Fortune's Most Powerful Women's Summit in Washington October 13, 2015.  REUTERS/Kevin Lamarque/File Photo

Summary List Placement

The “Buffett Effect” lifted AbbVie, Merck, Bristol Myers Squibb, and Pfizer shares on Tuesday.
The four pharmaceutical stocks jumped after Warren Buffett’s Berkshire Hathaway revealed that it invested in them last quarter.
The famed investor’s company disclosed stakes worth $1.8 billion to $1.9 billion in AbbVie, BMS, and Merck, as well as a $136 million Pfizer position.
The four holdings were worth nearly $6 billion as of Monday’s close, up from $5.7 billion at the end of September, representing a $300 million gain for Berkshire.

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AbbVie, Merck, Bristol Myers Squibb, and Pfizer are the latest beneficiaries of the “Buffett Effect.”

The quartet of pharmaceutical stocks jumped in pre-market trading on Tuesday after Warren Buffett’s Berkshire Hathaway revealed on Monday that it invested in them last quarter. AbbVie, Merck, and Pfizer gained as much as 2%, and BMS rose as much as 3%, whereas benchmark S&P futures slid around 0.5%.

Buffett famously moves markets with his decisions, as many investors trust his judgment and copy his stock picks. Others anticipate that will happen and rush to buy the same stocks in order to profit from the “Buffett Effect,” making it a self-fulfilling prophecy to an extent.

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Source:: Businessinsider – Finance

      

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