Buffett distances himself from Teva investment

Warren Buffett Photo: ASAP Creative

Warren Buffett told "CNBC" that one of his deputies picked the stock and he had no idea why the investment was made.

Warren Buffett has distanced himself from Berkshire Hathaway's investment in Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA). Speaking to "CNBC," he punctured the notion that the "Oracle from Omaha" saw some special hidden value in the Israeli pharmaceutical company, or was planning to link it to the healthcare venture he has set up with Jeff Bezos and Jamie Dimon.

Earlier this month it was revealed that Berkshire Hathaway, controlled by Buffett, had acquired 18.9 million shares of Teva during the fourth quarter, giving it a 1.8% stake in the troubled Israeli drugmaker for a total investment of $358 million. The news sent Teva's share price soaring.

But in the "CNBC" interview, Buffett made it clear that he had no idea why the position was taken. He said that one of his investment deputies bought Teva and the investment deputy didn't tell him and won't if he sells it.

Teva's share price is down 2.15% on the NYSE, giving a market cap of $19.94 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Warren Buffett Photo: ASAP Creative
Warren Buffett Photo: ASAP Creative
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