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Our Sell Discipline

Listen on: iTunes | Google Podcasts | Online A client asked whether there is a difference in our sell discipline between high- and low-growth companies. Selling is one of the hardest parts of investing. I wrote a lot on the subject in the past, but let’s zoom in on how our selling practice differs between high-growth companies with long runways […]

McKesson: Amazon Will Not Throw This Drug Railroad Off The Tracks

Listen on: iTunes | Google Podcasts | Online Amazon.com has been one of the most innovative and disruptive companies of this century, with incredible success in areas that lie outside of what has been historically perceived as its core business (book selling). Thus every announcement or speculation that Amazon will enter into a particular industry sends stocks of that industry […]

Here’s Why Pharmacy Stocks Are a Bargain Right Now

Listen on: iTunes | Google Podcasts | Online My investment management firm’s portfolio has a large position in the health-care sector, and with AbbVie’s $63 billion takeover bid for Allergan earlier this week, it’s timely to review why we bought into this sector. Without commenting on Allergan shares of which we own, or AbbVie which we do not, health care companies […]

This Stable Value Stock Is Built To Weather Market Storms

It is hard to say anything about McKesson that we have not said before — it is a high-quality business with extremely cheap shares. The pharmaceutical distributor should earn around $15 in 2020 and will IPO its technology business, which will unlock another $20-30 of value. McKesson stock is not just cheap — it’s incredibly cheap. […]

Investors Have Misdiagnosed Amazon’s Push Into The Pharmacy Business

Companies everywhere, in every business, are paranoid about Amazon.com. This sort of paranoia is healthy for the long-term well-being of our investment portfolio, as it is creating interesting buying opportunities. A case in point: My firm spent a lot of time thinking about pharmacies when we were analyzing investments in McKesson and other drug distributors. […]

Amazon Is Not a Threat to This Industry

Amazon.com has been one of the most innovative and disruptive companies of this century, with incredible success in areas that lie outside of what has been historically perceived as its core business (book selling). Thus every announcement or speculation that Amazon will enter into a particular industry sends stocks of that industry into a tailspin. Investors […]

The Pharma Stocks We’re Buying Now

Last week I explained why my firm is investing in pharmaceuticals stocks, despite the sector being a favorite punching bag of politicians. I noted that we have recently added to our existing positions in Amgen, Allergan, and Gilead Sciences, and I promised that I would unveil two new positions this week. Drumroll, please: Mylan Pharmaceuticals […]