The past month has been hard on the shareholders of Express Scripts (ESRX). After management popped the bubble of analysts' earnings estimates by forecasting the continuation of the "current weak business climate," the shares have tumbled 20% from their recent all-time high of $66.06 to settle around $52.00. Rather than being scared off by this fall from grace, I am reminded of the admonition in The Warren Buffett Way that "price declines are a welcome way to add more shares to your portfolio" and to quote Buffett again, I see Express Scripts as a classic example of stock in which "growth and value... are joined at the hip."

Business Overview

Founded in 1986, Express Scripts has grown through internal growth as well as a series of mergers and acquisitions, the most recent being its acquisition of Medco, to become an integrated pharmacy benefit management service covering prescription