JNJ - Johnson & Johnson

[Spekulatius]

I have owned JNJ before when it as cheap relative to the market and growth had slowed down. I think this was probably 15 years ago. I think they have proven time and time gain that they can restart growth and generate satisfactory results. it’s a bit like Nestle that way. So I think it is a buy in heuristic way. I think at this point (aging bull market) , it will likely outperform the index with much lower risk. The main risk is that JNJ just stalk out, and one likely will be flat or perhaps slightly down, but it is unlikely that one will incur large losses. So it’s a heads I ein, tails I don’t lose (much) kind of situation. I actually think it is a Buffet buy, but he shied away from Pharma and health care overall.

 

The robotics angle is just a free option. It is an indication that they are working with the a LT perspective in mind.

[Read the Footnotes]

I have owned JNJ before when it as cheap relative to the market and growth had slowed down. I think this was probably 15 years ago. I think they have proven time and time gain that they can restart growth and generate satisfactory results. it’s a bit like Nestle that way. So I think it is a buy in heuristic way. I think at this point (aging bull market) , it will likely outperform the index with much lower risk. The main risk is that JNJ just stalk out, and one likely will be flat or perhaps slightly down, but it is unlikely that one will incur large losses. So it’s a heads I ein, tails I don’t lose (much) kind of situation. I actually think it is a Buffet buy, but he shied away from Pharma and health care overall.

 

The robotics angle is just a free option. It is an indication that they are working with the a LT perspective in mind.

 

I would agree with most all of this. I would expand on your comments by saying that sometimes you get interesting opportunities in healthcare stocks when a consumer staples business is combined with a pharma business, or other business with higher R&D costs. The attributes of the businesses are so different that if enough people are lazy in their analysis odd valuations can emerge that present opportunties.

[dwy000]

Market caps of other drug companies (in billions)

 

ABBV  113

AMGN 121

REGN  32

BMY    87

CELG    73

BIIB    41

GILD    82

 

That adds up to 549. You could buy up all the drug companies for less than the market cap of AAPL or MSFT.

 

Off topic :

 

+LLY  105 [<- Just sayin' [ ; - ) ]]

 

-Back to topic.

 

+ PFE  $205 [just sayin' as well]

[RuleNumberOne]

Buffett held JNJ through the worst period in its 40-year chart. It stayed flat from 2006-2007 when he started buying through 2011-2012 when he sold. After that it went up 2.5x.

 

It has the most dependable drug discovery engine. But the risk right now is threats from Dem candidates about confiscating drug patents.

 

I think companies like JNJ and MRK should move their scientists and their manufacturing to China. China wants to become a biotech power and will treat these companies much better. The US can then pay billions to import Keytruda and Gardasil from China rather than the other way around.

 

Elizabeth can then threaten China about confiscating drug patents.

 

JNJ is rarely available at a P/E under 15. Definitely not when the market P/E is even higher.

 

 

[RichardGibbons]

It has the most dependable drug discovery engine. But the risk right now is threats from Dem candidates about confiscating drug patents.

 

I think companies like JNJ and MRK should move their scientists and their manufacturing to China. China wants to become a biotech power and will treat these companies much better. The US can then pay billions to import Keytruda and Gardasil from China rather than the other way around.

 

Elizabeth can then threaten China about confiscating drug patents.

 

It's worthwhile noting that patents aren't worldwide, but rather country-based. So, even if a drug is invented in China, it would still need a US patent to be patented in the US.  Without that American patent, generic drug companies can still manufacture it in the USA.

 

Also, China isn't the bastion for the protection of Intellectual Property that you might think it is.

[Cigarbutt]

I have owned JNJ before when it as cheap relative to the market and growth had slowed down. I think this was probably 15 years ago. I think they have proven time and time gain that they can restart growth and generate satisfactory results. it’s a bit like Nestle that way. So I think it is a buy in heuristic way. I think at this point (aging bull market) , it will likely outperform the index with much lower risk. The main risk is that JNJ just stalk out, and one likely will be flat or perhaps slightly down, but it is unlikely that one will incur large losses. So it’s a heads I ein, tails I don’t lose (much) kind of situation. I actually think it is a Buffet buy, but he shied away from Pharma and health care overall.

 

The robotics angle is just a free option. It is an indication that they are working with the a LT perspective in mind.

So, it looks like JNJ is injecting more money into that free option.

https://www.reuters.com/article/us-verb-surgical-m-a-johnson-johnson/jj-to-buy-remaining-stake-in-verb-surgical-to-strengthen-digital-surgery-portfolio-idUSKBN1YO1GL

Read The Footnotes' comments are warranted about the uncertainty of the outcome but, in a way, it's refreshing to see that they continue to invest for the long-term despite being swamped by negative headlines.