So the big news out of Berkshire Hathaway’s latest 13-F is that Warren Buffett has taken a stake in Beckton Dickinson (BDX). The company is a maker of medical supplies and devices.
We don’t know what his thinking is, or why he likes that particular stake, but it’s interesting that he, for one, is not afraid to buy into a healthcare stock ahead of a possible overhaul of the healthcare system.
But then, why should he be?
We keep hearing talking heads on TV talking about how the spectre of reform is hurting the health stocks, but honestly, your head would have to be on another planet to not realise that a plan to extend insurance to another 50 million American would be bad for the providers of insurance, pills and devices.
Another reason to discount the pundits is that they’ve been banging the drum on healthcare day in and day out for over a year now because it’s “defensive” as if that alone were a good enough reason to buy a stock. But, just based on our gut feeling, the mere fact that everyone and their grandmother has been pro-healthcare for so long would make us beliefe that, if anything, these stocks are overpriced. We don’t know if they actually are, but eventually, no matter how bad the economy is, the “defensive” argument disappears.
Amusing sidenote on Berkshire’s new portfolio addition. As Eddy Elfenbein notes, they misspelled Beckton Dickinson in the 13-F. For some reason it’s listed as Beckton Dickson. Sloppy!
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.