Johnson & Johnson: Keep Your Money Safe

Johnson & Johnson (JNJ) is engaged in the research and development, manufacturing and sale of a range of products in the health-care field. Johnson & Johnson has more than 250 operating companies and operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics.

With increasing speculation on the fact that we are reaching the top of the present bull market, we thought that we would take a look at some more conservative stocks. Assuming that we are looking to remain invested in the stock market, where could we put our money?

JNJ is not trading at 30% under fair value and is not set to sky rocket in the near future. However, it presents a chance to own one of the best blue chip companies in the market and a company that has been shaping the health-care system for over 120 years. Furthermore, we are confident that it will continue to do so, profiting from the expected growth and importance of this sector in years to come.

In summary, this is an ideal long-term play for any portfolio. JNJ is a blue chip company that:

Operates in one of the fastest growing sectors in the global economy.

Has great balance sheet with a track record of strong performance and healthy dividends.

Is trading at a very reasonable multiple.

Presents reduced risk in case of an upcoming market correction.

Furthermore, for followers of Warren Buffett, Johnson & Johnson represents over 5% of Berkshire Hathaway portfolio.

JNJ 1-yr chart

Disclosure: none