Buffett's Johnson and Johnson (JNJ) Makes Up For Some Of His Mistakes

Image via Wikipedia3 Stocks Warren Buffett Owns That You Shouldn't

By Anand Chokkavelu, CFA
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October 18, 2010

Yes, the three stocks I'm about to share are all owned by Warren Buffett -- and, more importantly, I don't think they should be owned by you.

To be clear, these aren't trivial positions hiding in the corners of his Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) stock portfolio. No, together, they make up almost a quarter of it.

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Is this heresy?

Studies have proven that following Buffett pays off big time. Each quarter, Buffett must tell the world all his major stock moves via Form 13F filings with the SEC. A recent study showed that investors could have crushed the market by mimicking his moves exactly. Even with the handicap of buying those stocks up to three months after Buffett.

Warren Buffet's Berkshire Hathaway Buying Johnson and Johnson, Becton Dickinson

Image via Wikipedia

How many times has Warren Buffett been wrong?  If Buffett is buying Johnson & Johnson, that makes it a buy.  Even with the whole Tylenol fiasco, I think it is oversold.  

Billionaire Warren Buffett's Berkshire Hathaway has been quietly buying shares of Johnson & Johnson, and Becton Dickinson at an astonishing rate.  This endorsement from Omaha, Nebraska's famous billionaire, The Oracle from Omaha, has made these stocks a buy.

Warren Buffett Biography:  The Story of Berkshire Hathaway's Billionaire Chairman

The Snowball:  Warren Buffett and the Business of Life

JNJ at a discount


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