
NYSE:LLY
Looking at the growth rate ahead, still not expensive. Diversified segments, including Alzheimer's. Good promising pipeline. One of the leaders in diabetes and weight-loss management. Demographics mean that more people will need treatment. Gross and operating margins remain very strong, over 30%. So profitability is still excellent. Yield is 0.6%.
Still sees 30+% earnings growth rate for 2025.
The GLP-1 weight loss companies are really in the sweet spot. For example for LLY, a very large holding for him, the opportunity for them is a very large marketplace. Getting approval for a broader range of uses.
He also owns ISRG, which will help with the cost of healthcare, a very big growth opportunity. He owns MCK too.
Those 3 names together make up a 5% weight for him, which is underweight the market.
Doesn't know NVO well enough nor their drug pipeline. Yes, their weight-loss drug has done well, but he doesn't own this or LLY. Their valuations have priced in the weight-loss drugs. He prefers Amgen, because their weight-loss drug is under trial and not priced into the stock yet. And it trades at a lower PE than these peers.
Healthcare space provides nice combination of growth with stability, in case we get into latter stage of economic cycle.