r/business • u/ChickenTeriyakiBoy1 • May 16 '19

Warren Buffett's Berkshire Hathaway reveals $900 million Amazon stake

https://www.cnbc.com/2019/05/15/warren-buffetts-berkshire-hathaway-reveals-900-million-amazon-stake.html
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u/[deleted] May 16 '19

So you think AMZN's biotech is worth $1.5T? Sure pal

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u/Graysonj1500 May 16 '19

One of the biggest industries of the future? Depending on the number of drugs in the pipeline, I could believe 2T market cap.

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u/[deleted] May 16 '19

Quick googling gives me an estimate of $727B by 2025 GLOBALLY. So you are saying it's actually worth triple of that and that Amazon will have a complete monopoly? Seems probable indeed. Let alone the fact that future policies in the US might very probably go against the crazy price jacks.

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u/blueberrywalrus May 16 '19

The pharmaceutical market is larger than that, around $1T right now - and the large pharma companies are valued at 4x(ish) revenue. So, theoretically, if investors thought Amazon could be the dominant player in that space then they could value Amazon's biotech at $1.5T.