On CNBC’s Squawk Box, billionaire investor Warren Buffett revealed that he’s adding to his position in the pharmaceuticals sector.
However, Buffett added that it's one area where he doesn't usually try to predict how individual companies will do in the future and that he might end up with a stake in a domestic drug company, especially since they make a lot of their money overseas, getting a boost from the weak U.S. dollar
What’s your interpretation?
I would keep an eye on Glaxo and Sanofi-Aventis, the two drug companies in which Mr. Buffett recently purchased shares, counsels Pete Najarian on CNBC’s “Closing Bell.” Also look at Johnson & Johnson , which Buffett has held for a while.
It seems that Buffett supports his position if he’s a large shareholder, Najarian explains. In other words, he continually seems to purchase when stock dips to a certain level. It’s almost like a Buffett "put".