Big guru news this week: The world's best investor, Warren Buffett, is taking advantage of the investment system we introduced back in March.
The system is to buy shares of "World Dominator" health care stock Johnson & Johnson (JNJ) when it goes on sale.
JNJ has all kinds of attributes the seasoned investor demands from a stock. The company owns a suite of world-class brand names, like Listerine, Band-Aid, Neutrogena, Splenda, Rogaine, and Tylenol. It earns high profit margins. It sports a bulletproof balance sheet. And its dividend payout is as consistent as the sunrise.
JNJ is such a strong business that its shares tend to decline significantly only when investors lose faith in the stock market and capitalism. Such declines occurred in 2000, 2002, and 2008. All were opportunities to load up on JNJ shares and enjoy the resumption of its uptrend. Something like this is on Buffett's mind… The super investor spent the last quarter upping his stake in JNJ by 73%.
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