Warren Buffett buys a drugmaker and dumps IBM

Warren Buffett is making another big bet on health care.His company Berkshire Hathaway recently took a $358 mi...

Posted: Feb 15, 2018 9:48 AM
Updated: Feb 15, 2018 9:48 AM

Warren Buffett is making another big bet on health care.

His company Berkshire Hathaway recently took a $358 million stake in Teva Pharmaceutical, an Israeli company that makes generic drugs. It fills about one in six generic prescriptions in the United States.

The company's stock spiked about 7% after the market closed.

Buffett's stake, reported in an SEC filing on Wednesday, is part of his attempt to improve the health care industry. Last month, Berkshire, Amazon and JPMorgan Chase announced they would form a company to give their U.S. workers and their families better health insurance.

"The ballooning costs of health care act as a hungry tapeworm on the American economy," Buffett said at the time.

Related: Jeff Bezos, Warren Buffett and Jamie Dimon want to fix health care

Health spending is a growing expense for businesses and people. National health spending, which includes spending by federal and state governments, the private sector and people, has risen from just 5% of the economy in 1960 to 18% two years ago. It's projected to rise to almost 20% by 2025.

Experts expect Amazon to break into the prescription drug distribution business.

Related: Jeff Bezos and his two friends just spooked health care stocks

Berkshire Hathaway also dumped almost all its IBM stock over the last three months. Buffett's company sold 35 million shares, leaving it with about 2 million.

The disclosure didn't appear to affect IBM stock, which ticked higher after hours. That may be because investors already knew Buffett was souring on it. Last May, he said he had gotten rid of a third of his IBM shares.

"I don't value IBM the same way that I did six years ago when I started buying," he told CNBC at the time. "I think if you look back at what they were projecting and how they thought the business would develop, I would say what they've run into is some pretty tough competitors."

Buffett's company also ditched 10 million shares of General Motors and 6 million shares of Wells Fargo. And it bought more than 31 million shares of Apple.

- CNN's Jeanne Sahadi contributed to this report.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 515504

Reported Deaths: 10296
CountyCasesDeaths
Harrison34999558
DeSoto33360432
Hinds32743643
Jackson24906392
Rankin22565405
Lee16455245
Madison14954283
Jones14158248
Forrest13834260
Lauderdale12311323
Lowndes11357193
Lamar10693140
Pearl River9748244
Lafayette8868143
Hancock7849132
Washington7559169
Oktibbeha7229138
Monroe7068179
Pontotoc7033110
Warren6885178
Panola6791135
Neshoba6744210
Marshall6707142
Bolivar6468151
Union643598
Pike5942157
Alcorn5921107
Lincoln5540136
George510680
Prentiss508285
Tippah495683
Itawamba4884107
Scott478999
Tate4777117
Adams4776125
Leflore4749144
Copiah458195
Yazoo458092
Simpson4566117
Wayne443472
Covington434895
Sunflower4319106
Marion4295112
Coahoma4244110
Leake414191
Newton396182
Tishomingo386894
Grenada3789109
Stone366166
Jasper341266
Attala340490
Chickasaw318367
Winston318392
Clay312978
Clarke301695
Calhoun286850
Holmes272889
Smith270552
Yalobusha244947
Tallahatchie232353
Greene225149
Walthall222166
Lawrence220242
Perry214556
Amite210357
Webster206548
Noxubee188843
Montgomery182157
Carroll175441
Jefferson Davis174343
Tunica163539
Benton153139
Kemper145441
Choctaw137027
Claiborne134839
Humphreys132239
Franklin126530
Quitman107828
Wilkinson106139
Jefferson97134
Sharkey65321
Issaquena1957
Unassigned00

Alabama Coronavirus Cases

Cases: 847659

Reported Deaths: 16172
CountyCasesDeaths
Jefferson1163752005
Mobile743371381
Madison53434738
Shelby38413371
Baldwin38171589
Tuscaloosa36131643
Montgomery34571782
Lee25664264
Calhoun22622519
Morgan22527408
Etowah20059520
Marshall18821318
Houston17769426
St. Clair16946359
Limestone16192220
Cullman16140305
Elmore15948295
Lauderdale15055307
Talladega14244302
DeKalb13061271
Walker12138380
Blount10765193
Autauga10545157
Jackson10204195
Coffee9435192
Colbert9363210
Dale9038192
Tallapoosa7283202
Russell710165
Chilton7078170
Covington6967197
Escambia6962144
Franklin6364108
Chambers5795142
Marion5435130
Dallas5302210
Pike5128109
Clarke485686
Lawrence4845130
Winston4785110
Geneva4650136
Bibb435495
Barbour370180
Butler3444101
Marengo342793
Monroe338366
Randolph337767
Pickens334790
Fayette331485
Henry321066
Cherokee319964
Hale318889
Crenshaw261678
Washington256852
Cleburne255460
Lamar253555
Clay252069
Macon245767
Conecuh193562
Coosa185847
Wilcox178338
Lowndes178268
Bullock152745
Perry141840
Sumter139741
Greene130345
Choctaw94328
Out of AL00
Unassigned00
Tupelo
Cloudy
65° wxIcon
Hi: 67° Lo: 56°
Feels Like: 65°
Columbus
Cloudy
66° wxIcon
Hi: 68° Lo: 54°
Feels Like: 66°
Oxford
Cloudy
° wxIcon
Hi: 66° Lo: 59°
Feels Like: °
Starkville
Cloudy
68° wxIcon
Hi: 70° Lo: 53°
Feels Like: 68°
Rain coming in this weekend as a cold front moves through the area bringing cooler temperatures on into the start of next week.
WTVA Radar
WTVA Temperatures
WTVA Severe Weather