3 STOCKS TO BUY DECEMBER 2018 - McKesson MCK - part 1 | Summary and Q&A

TL;DR

McKesson is a value investment opportunity with strong cash flow, high return on invested capital, and a defensive market position.

Key Insights

• 💪 McKesson is a defensive investment in the pharmaceutical distribution industry, with a strong market position and steady revenue growth.
• 😘 The company has a high return on invested capital of 12% and a low valuation, making it an attractive investment opportunity.
• ✳️ Risks include the threat of Amazon entering the market and potential fines related to the opioid epidemic.

Transcript

good day fellow investors it's the end of the month and it's customs for a YouTube channel investing channel to make the free stocks to buy in the next month last month I made free contrarian plays with a gold mine or copper miner this month I want to focus on great businesses I'll separate this series in three parts so that we can really dedicate ... Read More

Questions & Answers

Q: Why is McKesson considered a value investment opportunity?

McKesson is considered a value investment due to its low valuation, high free cash flows, and strong moat in the pharmaceutical distribution market.

Q: What are the main risks associated with investing in McKesson?

The main risks for McKesson include the threat of Amazon entering the industry and potential fines and regulations related to the opioid epidemic.

Q: How has McKesson rewarded shareholders in the past?

McKesson has rewarded shareholders through dividend increases, share buybacks, and a return on capital of 12% over the long term.

Q: Is McKesson a recession-proof investment?

McKesson is considered recession-proof due to the consistent demand for pharmaceuticals, regardless of economic conditions.

Summary & Key Takeaways

• McKesson is a pharmaceutical distributor with $208 billion in revenues in 2018 and one-third market share in prescription medicine in North America.

• The company has steady revenue growth, stable gross margins, and tripled its dividend payout over the past 10 years.

• With a strong moat in the market, McKesson has a low valuation, high free cash flows, and a return on capital of 12%, making it an attractive investment option.