Sanofi SA (ADR) (SNY), Johnson & Johnson (JNJ), and Three Things Warren Buffett Likes About Healthcare

The short term has looked pretty good for Sanofi SA (ADR) (NYSE:SNY) lately, though. Shares are up nearly 30% over the past year. While they’re not up by nearly that much compared to 2006 levels, remember that Buffett kept adding to his position when shares were dropping. By focusing on buying the business, he has done quite well with his investment in Sanofi.

Liking with open eyes
Just because Warren Buffett likes an investment doesn’t mean that he’s blind to problems. For example, he cut back most of his position in Johnson & Johnson (NYSE:JNJ) after J&J recalled products and encountered legal problems related to misleading doctors and patients about medication risks. Buffett commented that J&J still had “a lot of wonderful products and it’s got a wonderful balance sheet” but that the company had made “too many mistakes.”

We can’t all be Warren Buffett, but we can learn from him. What he likes about health care can help us find other companies that we can like. But it’s up to each of us to keep our eyes open — and to take action. Like that other famous Mr. Buffett says (singer Jimmy Buffett): “People who think too much before they act don’t act too much.”

The article 3 Things Buffett Likes About Health Care originally appeared on Fool.com.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway and Johnson & Johnson. The Motley Fool owns shares of Berkshire Hathaway and Johnson & Johnson.

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