Buffett has a substantial stake in the pharmaceutical industry. He invested billions of dollars in big pharma stocks last year. The shares of pharma companies rallied powerfully last year on increased demand for therapeutic drugs, supplements, and other remedial needs for COVID-19. According to Statista, approximately $1.27 trillion was spent on medicines in 2020, up from just $887 billion in 2010.
As of September 2020, Berkshire Hathaway had invested $136 million in Pfizer Inc. (NYSE:PFE) and more than $1.8 billion each in AbbVie Inc . (NYSE:ABBV), Merck & Co., Inc. (MRK), and Bristol-Myers Squibb Company (NYSE:BMY). And the renowned investor’s long-term value investing strategy paid off because these stocks gained significantly. Considering their solid market position and sound financials, we think these four pharma stocks could still be worth buying.