Billionaire Prem Watsa’s Top 15 Long-Term Stock Picks

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10. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 81

Fairfax Financial Holdings’ Stake: $11.9 million  

Johnson & Johnson (NYSE:JNJ) makes and sells healthcare products. The following highlights demonstrate why the company is a compelling investment opportunity. Firstly, the report for the third quarter of 2024 indicates a sales growth of 5.2% to $22.5 billion, with operational growth of 6.3%, adjusted operational growth of 5.4%, and earnings per share (EPS) of $1.11. This demonstrates that the company has achieved solid sales growth, indicating strong demand and good execution in its core business. Secondly, the company plans to buy neurological drug maker Intra-Cellular Therapies and open a new tab for $14.6 billion, which is the biggest deal in more than two years, boosting its presence in the market for brain disease treatments. The deal would help accelerate growth in J&J’s drugs business after the company spun off its consumer health unit in 2023. It has made several transactions in the past few years to boost its pharmaceuticals and medical devices units, including a $13.1 billion deal for Shockwave Medical in 2024.

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