Warren Buffett the legendary investor from Omaha, Nebraska has set his sites on Becton Dickinson. Buffett's company Berkshire Hathaway has been accumulating shares since the second quarter of 2009. Becton is currently the world’s largest maker of medical needles and other products used by doctors and hospitals.
Berkshire now owns roughly 128 million in BDX shares which makes it a very small percentage of his overall 50 billion dollar stock portfolio. BD is the new kind of company Buffett likes to invest in. While BD shares offer value, it is the safe road he has to take when managing so much money. Buffett stated "It's a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that."
This is because Warren Buffett who is known to be a long investor is also a legendary seller. He is no longer able to put his money into stocks which can decline, all his bets have to be perfect. If he made a risky investment he would own so much stock that it would not be possible to sell. Or if he made a risky investment but did not own a lot of stock the returns would be so small on his portfolio that it would not be worth his time.
Becton Dickinson looks to be the new modern age Buffett stock, where the stock will likely outperform the market but not give the returns one would expect given his talent.
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