Message Font: Serif | Sans-Serif
No. of Recommendations: 36
I’ve been a JNJ shareholder since December 1999. I bought more shares in August 2003 and May 2006. My overall position is down about 3% because the May 2006 shares are down 14%

I’ve always viewed JNJ as “the rock” of my portfolio. It is the largest single position, and if I were to sell, I’d feel like I had given up on stock picking. But the depressing environment made me consider selling.

Then, today, I received the Annual Report. I must admit that I don’t usually read it diligently, but this time I did. All I can say is WOW ! Years ago I worked in Pharmaceutical R&D, and more recently in medical diagnostics.So I think I have a “feel” for the healthcare business. To say that JNJ is the “leader” in this area would be an understatement. They have a huge footprint in all of the major areas, including diagnostics, pharmaceuticals, medical devices, etc. A lineup of winning products, and
an incredible reputation for innovation and quality.

I came away with the feeling that JNJ is suffering lately from two problems:
1) the slowdown in the world economy, and
2) pharmaceuticals are not the “cash cows” they have been in the past.

Personally, I think it’s only a matter of time before the economy starts to grow again. And healthcare? Warts and all, it has phenomenal growth potential. And JNJ has a strong and diversified stake, which seems likely to profit from the healthcare needs of our aging society.

But, for good measure, I checked on what analysts have been saying. Two of my favorites, S&P and Value Line, are bullish on JNJ. More importantly, the numbers on their reports look very good to me.

If I did not have a position in this stock, I’d probably buy. If it wasn’t my largest position, I’d add shares. For myself, I think the smart thing is to hold.

See you next year!

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.