The hedge fund billionaire Warren Buffett is investing a significant amount of money into the US healthcare market, according to a report.
The US Chamber of Commerce has expressed interest in investing in an healthcare provider and Berkshire Hathaway has a stake in Humana.
It was reported by Reuters news agency that Buffett’s investment will include “over $1bn of investments, or up to a third of the total value of Berkshire’s investments in the healthcare industry”.
Berkshire Hathway’s US healthcare business, which operates as Berkshire Capital, has seen its market value soar to $2.3bn, making it the largest publicly traded healthcare company in the world, according the company.
Buffett has a long history in the sector, having founded Berkshire Hathaways private investment arm in 1929.
In 2018, Berkshire took a stake of around $1.4bn in Medtronic, the company that developed the highly successful drug for cancer.
Buffett is expected to invest $2bn in Humans US healthcare subsidiary in 2018.
The Berkshire Hathaws investment in MedTronic comes after Berkshire had bought Humana in 2016 for $1tn.
In the past year, Berkshire has become a significant investor in the health sector, particularly in the treatment of the chronic illnesses such as heart disease and type 2 diabetes.
However, Buffett said in 2018 that he had no plans to spend the $100bn that he put into Berkshire during his last years as a shareholder.
Buffett told Bloomberg TV in October 2018 that his healthcare investments are “largely in the form of equity in companies that are not going to do very well in the future”.