Special Report – A Backdoor Play on Longevity
Danaher makes money, not news
Note: I’ve spent the past two years focused on writing long-biased reports, mostly on companies that are better at making money than making news. All of it behind paywalls. Thanks to a few ch-ch-changes, this one is on the house.
This is the first in a series of “backdoor plays…”
Wall Street almost always takes things too far.
Whenever there’s a new theme or trend, investors are all in...
I’m not just talking about the hottest topic du jour – artificial intelligence, which very well may be overdone, for now, as an investment theme.
There was the Internet boom, when any company not somehow positioned as a dotcom was viewed as archaic and out-of-touch...
Even good ole Berkshire Hathaway (BRK), Warren Buffett’s creation, was relegated at one time to the then irrelevant bucket. Yet to this day, he has one of the most laughably rudimentary websites of any company anywhere...
It doesn’t matter, of course, because its stock has gone on to rank among the most consistently best performers of all.
Then there was the ESG, the acronym for Environmental, Social and Governance. There was a time not long ago that any company not considered ESG-friendly enough was deemed irrelevant to the point of being shunned.
Among them, Allison Transmission (ALSN), which I started recommending back in June 2022 based on the quality of its business. As the largest manufacturer of automatic transmissions for trucks, it gushed free cash flow.
Yet no sooner did I recommend it, than its stock got clobbered, almost as if its shares had been blacklisted.
Its sin: Automatic transmissions for trucks weren’t perceived as being ESG friendly.
Then, as the ESG hype faded, investors rediscovered Allison, whose shares are up 50% since my recommendation.
Which brings us to the latest Wall Street pile-on... or maybe I should say, pile-off...
The impact that Wall Street’s infatuation with those miracle weight loss drugs from Novo Nordisk (NVO) and Eli Lilly (LLY) is having across medtech and healthcare... something I’ve written about quite a bit in recent weeks.
As usual, the selloff is overdone and is creating a good setup for quite a few stocks that were perceived to be in the wrong industry at the wrong time… even if they they’re not.
One of the Best Compounders Ever
Among them there’s one company that rarely makes the headlines. but checks all the boxes…