McKesson (NYSE: MCK) , a leading distributor of pharmaceutical and medical supplies, is a favorite of institutional investors. That includes Warren Buffett's Berkshire Hathaway , which owns 3.2 million shares of the company, which are worth more than $1.1 billion. Berkshire Hathaway initiated its position in McKesson in the first quarter of this year by buying nearly 3 million shares, then added 276,000 more in the second quarter . It didn't buy any additional shares of McKesson in the third quarter, but held its position.
The stock is up more than 48% so far this year and there are plenty of reasons why Buffett may like it, including strong top- and bottom-line results. The company has increased annual revenue by 116% over the past 10 years and boosted its annual earnings per share (EPS) by 29% in that same period.
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Warren Buffett Likes This Passive Income Stock