CEO bets entire retirement savings on Pfizer shares: Should investors follow suit?

CEO bets entire retirement savings on Pfizer shares: Should investors follow suit?

According to a report by www.boerse-online.de, Pfizer CEO Albert Bourla has put his entire retirement savings into his company's stock. This behavior has of course stimulated discussion about whether this is also a good investment for investors.

Pfizer, a pharmaceutical company that has seen its share price decline 38 percent in the last twelve months, is planning a turnaround. This decline is partly due to concerns about the future of the company. Nevertheless, CEO Bourla believes in the company's future and has invested his entire fortune in Pfizer shares.

After the end of the corona pandemic, in which Pfizer made a lot of money from vaccines, the company's share price fell sharply. This is also related to expiring patents and falling sales. The acquisition of cancer specialist Seagen for $43 billion is intended to replenish Pfizer's pipeline and make the company more efficient.

Despite the CEO's risky behavior, analysts believe in a successful turnaround at Pfizer. The share is rated “Buy” on average and has a price potential of 18 percent. This makes Pfizer an interesting turnaround bet and can fit well into a broadly diversified portfolio.

However, it remains to be noted that the CEO's behavior represents a high risk and is not necessarily recommended for retail investors. It is recommended to monitor the stock as it offers potential but also carries risks.