Why This Billionaire Just Shelled Out $1.1 Billion on 4 Drug Stocks

Allergan, Mylan, Pfizer, and Teva attract a lot of attention and cash from David Tepper's hedge fund, Appaloosa Management.

"A billion here, a billion there, and pretty soon you're talking about real money."

It's debatable who first uttered that phrase. What isn't debatable, though, is that David Tepper and Appaloosa Management are accustomed to throwing around plenty of real money. The multibillion-dollar hedge fund run by Tepper spent over $1.1 billion in the fourth quarter of 2016 on just four drug stocks: Allergan (NYSE:AGN), Mylan (NASDAQ:MYL), Pfizer (NYSE:PFE), and Teva (NYSE:TEVA).

Why so much money on these stocks? And should ordinary investors follow the billionaire's lead? Let's look at what makes these particular pharmaceutical stocks so attractive.

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