Buffett buys Teva stake: How much upside expected?
Warren Buffett has amassed a fortune investing in value stocks: companies he thinks are positioned to appreciate thanks to solid business fundamentals.
So when he takes a stake in a company, people notice. On Wednesday, Buffett’s Berkshire Hathaway (NYSE:BRK.A) disclosed a $358 million stake in Israel-based generic drug company Teva Pharmaceutical Industries (NYSE:TEVA).
Teva’s shares climbed more than 7% on the announcement, but they are down almost 41% over the past year. While no one is always correct when it comes to picking stocks, Buffett has a pretty good track record. Here is a look at two of Buffett’s recent investment calls.
Buffett bets on tech giant
Even though Buffett hasn't allways been the biggest fan of technology stocks, he saw value in tech giant Apple (NASDAQ:AAPL) back in 2016. Berkshire Hathaway started buying tech stocks about midway through that year and had 59 million shares in its portfolio by year-end. On Wednesday, Berkshire Hathaway disclosed to the Securities and Exchange Commission that it had added even more Apple stock to its portfolio. From late 2016 through mid-February 2018, Apple’s shares appreciated almost 50%, according to data from FactSet
Buffett bets big on airlines
Buffett also started to bet big on airlines in 2016, adding multiple carriers to his portfolio. Berkshire Hathaway holds shares of American Airlines (NYSE:AAL), Delta Air Lines (NYSE:DAL), United Continental Holdings (NYSE:UAL) and Southwest Airlines (NYSE:LUV).
Since late 2016 through mid-February 2018, the stock of American increased 40%; Delta, 33%; United Continental, 26%; and Southwest, 49%.