Creative Investor

Why Buffett Loves Johnson & Johnson

I've actually done my own analysis prior to reading your article and found it very interesting to read your take on JNJ. I've actually used a much lower expected growth rate of 10%, my premise being that last 10 years don't really predict the next 10, especially with the economy for which everybody has his own forecast. At the same time I used a lower discount rate, 10%, since this company is a relatively low risk.

So, my intrinsic value is much higher at $98.64. At the same time, I look for 30-50% in MOS to account for my inexperience. Thanks much for your great analysis.

Here is my full analysis if anybody is interested:

creativeinvestor.blogs...