Out of 38 holdings in BRK-A’s portfolio 12 companies are dividend aristocrats, one is a dividend champion and three are dividend achievers. Only 5 of his holdings do not play any dividends at all.

Warren Buffett, the student of the now famous father or value investing Ben Graham, is the greatest stock investor of our times. He has built his flagship company, Berkshire Hathaway from a small mill to a diversified conglomerate with a total market cap of 175 billion dollars.

S&P's latest screen tracking the Berkshire Hathaway honcho's investing criteria turns up 49 attractive names.

The latest Berkshire Hathaway 13F was just filed. It appears Warren Buffett increased his position in IngersollRand, SanofiAventis and added a new position in NRG Energy. It also appears the holdings in AnheuserBusch were reduced.

So how can you turn a profit in this turbulent sector? By investing in contract research organisations, or CROs, says biotech expert Rob Fannon. When the big pharmaceutical companies outsource research to CROs they get paid whether or not the new drugs ever make it to market.

Morningstar analyst, Justin Fuller, reviews the changes to Berkshire Hathaway's portfolio in this first part of a two article series.

Followers of the sector know very well that biotech stocks have traditionally traded at premiums to their big pharma counterparts, mainly due to the fact that they tend to be smaller, and therefore one big product breakthrough can have a dramatic effect on the company, and fuel substantially higher earnings growth. It appears in today's market, however, that the two subsets of healthcare have converged as far as valuations go. As a result, I think there are opportunities for investors to capitalize.