Tuesday, April 30, 2019

Strong Life Sciences Continuing To Drive Danaher

Danaher (DHR) remains a great case-in-point of the challenge of balancing quality and opportunity with some semblance of value discipline. There’s no real argument I can see that Danaher isn’t a premier player in life sciences alongside Thermo Fisher (TMO) once the deal for General Electric’s (GE) Biopharma business closes, and if anything, the quality of Danaher’s Diagnostics and Environmental/Applied Solutions may be a little overshadowed now.

Still, it’s hard to call Danaher undiscovered or undervalued. I believe the shares are priced to return a solid annualized 7% or so to shareholders, and though that’s below what I’d normally accept for an equity investment, this is a case where maybe the quality argues for accepting a lower rate of return to have a solid core holding like Danaher in a diversified portfolio.

Follow this link for the full article:
Strong Life Sciences Continuing To Drive Danaher

No comments: