Buffett Backs Big Pharma as Safe Haven from Market Volatility
Warren Buffett has criticized the current market, calling it 'a church with a casino attached' due to excessive short-term speculation.
He recommends investing in defensive stocks that can generate consistent cash flows regardless of economic conditions.
Two healthcare companies stand out as safe bets: Merck (MRK) and Johnson & Johnson (JNJ).
Both have a long history of research, development, and financial discipline, with an emphasis on pharmaceuticals and medical devices that are less susceptible to market fluctuations.
MERCK has reported $16.6 billion in sales, led by the cancer drug Keytruda, which brought in $8.4 billion, up 5% year over year.
Johnson & Johnson reported revenue of $25.3 billion, with three therapies generating over $1 billion in sales each.
Both companies have solid dividend histories and invest heavily in research and development to maintain their market position.