Stryker Corp. (SYK)

Owned in the past, but now he owns BSX. Likes the sector, not getting hit as hard today as many other things. Aging population will propel demand for medical devices.

It produces medical devices which is a good business to be in. The aging population needs their products and there is a backlog from Covid. Their products change the quality of life and reduce hospital stays to a couple of days. 71% of its business comes from the U.S. and there is lots of growth internationally.

It's the best in medical devices. Tailwinds are the aging demographic and rising elective surgeries coming back.

It is a great company, well run, and a core holding. They execute very well on the orthopedic side and is one of the leaders. Five years ago they launched the robotic assisted surgery component which is performing very well. He sees it as a double digit compounder.

They will buy Inari Medical which largely treats a condition called VTE (impacts 900,000 Americans), which will enhance SYK's neuro-vascular business. He likes this deal.

Such an important area. Fell during Covid because classified as "elective" surgeries, but they aren't, as they help maintain quality of life without medication. Lots of opportunity to grow in EMs. Lots of free cashflow, which can be used for acquisitions.

Good products, good reputation. Good long-term investment in the medical device area. If you own it, keep holding. Her exposure to the space is via ABT and JNJ.

73% of their business comes from the U.S. with the rest from Europe and emerging markets. They make great surgical products (i.e. hip replacements). Also, surgeons are loyal to SYK products and rarely change brand. Aging demographics and foreign markets offer growth.

Problem with the chart right now is it's making a lower high and a lower low. Looks like we just took out the last low. In the near term, that's a downtrend. He doesn't buy into downtrends or ride downhill rollercoasters. If it does decide to stop, reasonable chance that it will stop near old breakout point, ~$300. If it finds support and bounces off, could be a great time to buy.

Wonderful business, one of the best operators in healthcare. Balance sheet back to being clean and ready to make acquisitions. Expects extremely strong results. A leader, and gaining market share. Valuation is pricey, needs to deliver future gains, so stock's hit a wall. He's still buying, loves it long term.

Sales machine. Market leader in joint replacement and medical products. Post-pandemic backlogs still huge. Double-digit topline revenue growth last few years, should continue. Acquisitive. Good free cashflow. Still growth in EMs. Valuation's run up, but he's not selling.

Has since sold shares. Believes stock is fully valued. Medical device business performing well. Surgeries recovered after pause during Covid-19 pandemic. 

Demographic tailwind. User loyalty. Most revenue comes from US. Global growth opportunities, especially in EM. Medical devices are really changing how people live. Covid backlog is being caught up. Tuck-on acquisitions. Yield is 0.9%.

Revenue: US (73%), developed world (19%), emerging markets (rest). Lots of good growth internationally. Demographic play. Strong brand loyalty. Free cash will be used for acquisitions. Great compounding story for the next several years. Yield is 0.9%.

AI and weight-loss drugs are the two manias in the market now. SYK makes medical devices (hip and knee), but you must be below a certain weight to qualify for these operations.  The weight-loss drugs will open a greater market for SYK.