Warren Buffett is an all-time great of Wall Street, so investors perk up when the Oracle of Omaha adds a new position to his portfolio. Medical products distributor McKesson Corporation (NYSE: MCK) became one of Buffett's newest holdings this year; he started a position in the first quarter of 2022 and added to it last quarter.
Buffett's investing strategy emphasizes investing in high-quality companies when they trade below their intrinsic value, what he believes the company is worth. He also likes companies that pay their shareholders, and McKesson has raised its dividend for the past 14 consecutive years. I will dive into McKesson's business and illustrate what compelled Buffett to put his money into the stock.
Healthcare is one of the world's most complex and fragmented industries; McKesson is a healthcare products distributor whose job is getting vaccines, medical supplies, and other products from manufacturers to the professionals that treat patients. The company does more than $268 billion in annual sales, making it one of the largest companies in the world that most consumers have probably never heard of before.
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Warren Buffett's Buying This Passive Income Stock