Selected American Shares (SLASX) Views on Johnson & Johnson (JNJ)

Christopher Davis, co-manager of Selected American Shares (SLASX) is known for taking very long-term positions in the companies that he purchases, regardless of short-term outlook and price fluctuations. When he recently discussed his views on Johnson & Johnson (JNJ), which has declined in value by 23% in the last 12 months he stated "Do I think J&J is much riskier, the earnings prospects worse, or its competitive advantage lower? No, I don't think so."

Selected American Shares (SLASX) invests heavily in strong and sturdy companies that are leaders in their fields. Johnson and Johnson is still considered a leader in its field, has strong financial statements, and should be able to weather the current economic downturn.

Selected American Shares (SLASX) also invests in companies that are cash rich, and in position to repurchase its shares from the market or acquire rival companies for future profits.

A third investment strategy of Selected American Shares (SLASX) is to purchase stock in companies that have depressed prices due to negative headline news and low consumer confidence, but with potential for long-term profits. This is a view that allows them to “buy low and sell high” for the most profits possible. In today’s market these stocks include the financial sector.

Despite recent loses Selected American Shares (SLASX) continues to be one of our top no-load mutual funds for long-term investment.