I’d Have To Disagree With Buffett’s Latest Stock Sells (As He Sells, I Buy)

Warren Buffett oversees a common stock portfolio for Berkshire Hathaway worth almost $300 billion.

This portfolio has largely been built by steadily accumulating shares in high-quality businesses over the years.

Buffett is a legendary “buy-and-hold” investor. And this patience has worked out tremendously well. However, that’s not to say that Buffett doesn’t sometimes sell stocks.

Berkshire Hathaway unloaded shares in a number of businesses over the first quarter of this year.

And today, I want to share with you two groups of stocks that they’ve been selling. This could give you some insight as to whether or not you should do the same. Ready?

Berkshire Hathaway spent the first quarter really lightening up on two groups of stocks. I’m talking about banks and pharmaceutical companies.

Where’s the love for Big banks and Big Pharma?

Well, I’ll tell you where the love is. It’s right here. With me. Despite Buffett being now less exposed to certain names in these two areas, I remain a huge fan of both.

So which stocks in these areas were sold?

In Big Pharma, Berkshire Hathaway sold about 2.7 million shares of AbbVie Inc. (ABBV), slightly more than 2.3 million shares of Bristol-Myers Squibb Co. (BMY), and just over 10.8 million shares of Merck & Co., Inc. (MRK). And in banking, they unloaded almost 1.5 million shares of U.S. Bancorp. (USB) and more than 51.7 million shares of Wells Fargo & Co. (WFC).

Let’s talk about those pharma sales first.

These are great companies that, in my view, are actually worth accumulating more than selling right now. AbbVie, Bristol-Myers, and Merck all have great fundamentals and low valuations, and they offer market-beating dividends growing at inflation-beating rates. We’ve been regularly featuring these stocks here at the channel as undervalued ideas to consider for long-term investment.

These pharmaceutical companies benefit from strong long-term demographic tailwinds.

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Disclaimer: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose ...

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