Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services. In 2016, the company held 55.4 million shares of the oil refiner that it bought for an average purchase price of $78.67 apiece, including buying 18 million shares that year for $77.23 per share.
Aside from Berkshire Hathaway's tech stock dealings, the United States investment firm's decision to buy a stake in Teva came with a purchase of 18.9 million shares, which are worth in the region of $358 million. Shares of Teva were down almost 50% over the past year before Buffett's firm announced its stake. Revenue was $3.21 billion. Berkshire owns many bank stocks in its portfolio, and these are two of the best-run institutions in the sector.More news: Indian forces target school van across LoC, driver martyred
While Buffett did miss selling at the most recent top, Berkshire has done exceptionally well with its investment in Phillips 66. Worse, rival drugmakers began selling cheaper copies of Copaxone, a blockbuster multiple sclerosis injection, dragging profits of Teva's highest grossing product.
Billionaire Warren Buffett bought 31.2 million shares of Apple in the last three months of 2017 through his company Berkshire Hathaway, increasing his shares in the technology giant by 23.3% to 165.3 million shares worth $28 billion, according to a filing with the Securities and Exchange Commission.
The Teva share price jumped sharply in after-hours trading.More news: Alzheimer's disease reversed in mouse model
Analysts on average have given a price target of $230.5 to Berkshire Hathaway Inc. Buffett admittedly misjudged IBM and has said that he revalued the company lower than he initially did. During the quarter, Berkshire unloaded 94% of its remaining IBM stake, and now owns just 0.2% of Big Blue worth $314 million. The company sold 10 million shares in General Motors, 6 million shares in Wells Fargo and 1 million shares in American Airlines. Berkshire resumed buying shares later.
Shares of the refiner closed at $93.76 on Tuesday.
One key takeaway is that Berkshire was not much of a buyer during the fourth quarter, which is likely to be a bit disappointing to investors who have been patiently waiting for it to put some of its $109 billion cash hoard to work. That was just above the reported US$27.8 billion stake in Wells Fargo.More news: Litecoin Nearly Doubles Its Value in Under 2 Weeks