Wednesday, August 26, 2009

Berkowitz: Buy Pharma on Obama Dip

Fairholme Fund manager Bruce Berkowitz says that investor fears over what the Obama administration’s policies could do to pharmaceutical and healthcare companies drove down their share prices, making them even more attractive investments.

Berkowitz, whose fund holds several drug and healthcare companies, told Forbes he became interested in the sector not because of the unbelievable money that the companies are making, but “because of the fear that the new administration was going to destroy our drug companies, destroy our healthcare companies, which sent the prices of these securities over the cliff.”

“The (share) price you paid versus the earnings that the companies were making were quite reasonable and one could get a double-digit yield,” Berkowitz says. (more)

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