16 Comments
User's avatar
Joshua Clauss's avatar

Interesting insights! I believe the essence of value investing lies in assessing a company's competitive edge and capital efficiency. How do you perceive the impact of these aspects on long-term investment prospects?

Herb Greenberg's avatar

For CVS? Won't know until you start seeing the details.

Dan Munro's avatar

Interesting development ... but raises new question.

Can CostPlusDrugs compete with CVS? Why would you want to?

Footnote: PBMs are easy targets - but for every $100 we spend on prescription drugs - about $5 goes to PBMs (generic/brand combined) - and their profit margin is even less. (~2%)

Herb Greenberg's avatar

Of course, maybe CVS buys CostPlus. Mark has gone out of his way not to comment on this.

Dan Munro's avatar

Certainly possible - but I'm not sure it has enough market share - and nothing really proprietary.

When elephants fight - the grass gets trampled ;-)

Herb Greenberg's avatar

You would know better than most!

Joan Wagner's avatar

Is this move by some of the pharmaceutical industry known as “the Biden Effect “? Good job!

Josh Slocum's avatar

Enjoyed the insight. I have been using Cost Plus for a while and enjoy their prices and transparency. Enjoyed meeting you both on your recent travels.

Herb Greenberg's avatar

Same here, Josh. Let's try to connect separately.

Sally D's avatar

Thanks for the update

Ray Cornwall's avatar

Great info!

Fritz Garrecht's avatar

As always Herb, you get to the heart of important issues … kudos

Rex Fermier's avatar

We can only hope that this is the start of more reasonable prescription drug pricing.

Abb b's avatar

I saw the headline but now I really understand what’s going on. Thanks!

John Schwartz's avatar

Herb--superb! keep up the great work, old friend!

John Schwartz

Josiah M. Daniel, III's avatar

Excellent information for everyone, so thank you.