- Becton Dickinson, a leading global supplier of non-cyclical healthcare products, enjoys extraordinary double-digit revenue growth for a large cap stock.
- The Value Investing for Main Street Model Portfolio has owned the stock since January 2009, after passing on Johnson & Johnson, enjoying a 160% cumulative capital gain plus dividends.
- However, our current view of questionable management transparency, low returns on capital, fragile liquidity, and inflated valuations suggest the stock is now as expensive as our health insurance.
- We argue why it may be time to take profits by selling or reducing to hedge against a steep price correction from the eternally short-sighted Mr. Market.
- Hence, Johnson & Johnson and its enduring margin of safety is back on our screen.
Welcome to the tenth installment of the Value Investing for Main Street series, the healthcare edition, exclusively on Seeking Alpha.