I am long Merck for 15 plus years. I have seen my investment go up
over 40X and it now pays 50% of my original investment each year.
I had to take my original shares out of the drip because it was
dwarfing everything else I have but I let the shares I got as dividends continue to reinvest. I also have done very well on JNJ,
Lilly, and Abbott but not to the same extent. I will take this
slow, but steady growth over risky stocks any day.
Still, I am not sure that Merck is a Gorilla. I do not even think
there can be a gorilla in such a fragmented market. I do think that
biotechs have gorilla potential (in small fields). I am looking
to assemble a portfolio of some biotechs to hold for ten years or so.
I will buy stocks with cash in their balance sheets, drugs coming
onto market, marketing/research deals, etc. to weed out the iffy ones
and give a better chance. I plan on buying 5 stocks and hope for
one to do very well and at least one or two more to be bought out
a profit by the big drug companies to get their technology and formulas.
As an industry, the new drug delivery and genetic technologies have the potential to change life as we know it--more than any technology
company has done(they change how we work, live, and communicate) but
not life.
Bruce |
