On the 3rd issue of our ValueEdge Newsletter, Johnson and Johnson (JNJ) and Sanofi Aventis (SNY) occupied the first and second place, respectively, among stocks trading at cheap levels according to our Contrarian Strategy screen. The screen is comprised mostly of stocks trading at 52 week lows with no material news. Apparently, Warren Buffett thinks both JNJ and SNY are cheap as well.
According to SEC filings, Warren Buffett’s Berkshire Hathaway boosted its stake in Johnson & Johnson by 73 percent between March 31 and June 30, adding 17.4 million shares worth just over $1 billion at today’s closing price of $58.01. The Oracle of Omaha also increased his company’s exposure to Sanofi Aventis by 4.1%, up 159,742 shares to a total of 4,063,675 shares.
We continue to believe both companies are cheap.