Warren Buffett Buys $60 Million Worth of Teva in the Dip

Berkshire Hathaway also massively invested more in Goldman Sachs and Apple

Attendee takes selfie with a cardboard cutout of Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., at the Coca-Cola Co. booth during a shareholders shopping day ahead of the Berkshire Hathaway annual meeting in Omaha, Nebraska, U.S., on Friday, May 4, 2018.
David Williams/Bloomberg

Billionaire investor Warren Buffett increased his stake in Teva Pharmaceutical Industries to 4.3% during the second quarter of 2018, according to the quarterly financial statement from his investments firm Berkshire Hathaway.

Berkshire Hathaway, which Buffett runs as chairman and CEO, 2.7 million Teva shares during the quarter, which are now worth $60 million. The company now owns 43.2 million Teva shares, or 4.25% of the company's stock. Altogether its stake is worth $957 million, according to Teva's closing price on Tuesday.

Earlier this month, Teva took a pounding on the stock markets – it is dual-listed in Tel Aviv and New York – even though profits had exceeded Wall Street expectations. But the company admitted that second-quarter revenues fell short of expectations. It also revealed and concerns about eroding prices and sales in its key U.S. market.

Teva earned 78 cents per share in the second quarter, excluding one-time items, far short of the from $1.02 per share it had earned a year earlier. Revenues fell 18% year over year to $4.7 billion. Analysts had predicted earnings of 64 cents a share excluding one-time items on revenue of $4.74 billion.

During the second quarter Berkshire Hathaway bought no less than $6.1 billion worth of shares, including half a billion in Goldman Sachs. Buffett's investments company increased its stake in Goldman, in which it began to invest during the financial crisis of 2008, by over half a billion dollars. Berkshire Hathaway now owns 21% of Goldman, worth $2.92 billion.

Berkshire Hathaway also increased its interests in technology company Apple to 252 million shares worth nearly $47 billion, and in the drugs company Aclasta, the Bank of New York, the Delta aviation company, and General Motors.