(A Top Pick Oct 04/17, Down 7%) Has owned this for 22 years. #1 insulin maker in the world. Just came out with a drug for weight loss. There'll be a 54% increase in diabetes in 12 years. They and Merck had the best revenue growth. Stock fell a little because a competitor got FDA approval for a similar insulin. They are selling more outside the U.S. and need to sell more to China and India. Then, the street will favour them again.

With diabetes rising worldwide, will this be a successful investment?  He does not want to be in the insulin business.  The US is about $100 per vial, whereas in Europe it is about half the price.  He thinks there is a risk of a Presidential Order that could allow the import of cheaper offshore supply into America. 

(A Top Pick August 26, 2016. Up 4.09%). This is a leader in the diabetes space, and that market is growing. The trend is up considerably, especially in emerging market companies. NVO pays a modest dividend, they have a very large market share and a profit margin that is much higher than their competitors because of their scale and size. They can afford to cut prices more aggressively than competitors when they enter new markets. The consumers in emerging markets are price-sensitive so this is an important advantage.

Starting moving away from US markets, where all the margin compression on price is coming from. Demand for insulin is going to come out of India and China for the next 25 years. They should be able to continue to grow the business. Margins are so high that they can always generate free cash flow, regardless of where the price of insulin is. If they can get the top line growing, margins are so high they can start to generate free cash flow that will drive the growing dividends over time. For new clients coming in, he is buying a half position only. He wouldn't be an aggressive buyer today.

This is very involved in treatment for diabetes. Has stayed away because of the pricing of insulin. Insulin prices have increased almost every year sequentially for the last 20 years, which is incredibly difficult to understand, given the strides that have been made in increasing yields in the biotech fermentation process to produce the drug. Every time new entrants come into the industry, they seem to take the same pricing increase every year. In Europe, insulin is sold at a fraction of the price it is sold in the US. The US president could sign an Executive Order at any time, allowing imports of drugs from the European market, which would collapse the profitability of the industry. He doesn't understand the pricing dynamics.

A Danish company with about $50 billion in market cap. A global leader in diabetes management. As the world got richer, we all got fatter. They recently announced a $5 billion share buyback. They do this in four-month chunks and are in the middle of the 1st splice. They did this last year as well. They are in a growth market. The stock has had a pretty big run. Look at this in the 1st quarter to see if it pulls back, and if it does add it to your portfolio.