Johnson and Johnson (JNJ)

As mentioned in my previous post, the recent market movements have gotten under my skin a bit. I decided it was time to diversify a bit and put my money in what I consider a safer company.

G, what does this company do?

From google finance:

Johnson & Johnson is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. Johnson & Johnson has more than 250 operating companies. The Company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. Sales of the Company's two largest products, RISPERDAL/RISPERDAL CONSTA and PROCRIT/EPREX, accounted for approximately 8% and 6% of Johnson & Johnson's total revenues, respectively, during the year ended December 31, 2006. In May 2006, ETHICON, Inc., a Johnson & Johnson company, acquired Vascular Control Systems, Inc., which is focused on developing medical devices to treat fibroids and to control bleeding in obstetric and gynecologic applications. On December 20, 2006, the Company completed the acquisition of the Consumer Healthcare business of Pfizer Inc. In February 2007, the Company completed the acquisition of Conor Medsystems, Inc.

G, where did you find this company?

I've owned the company for quite a few years but only from my poor college days. My dad recommended back in those days and it's had a good solid rate of return.

G, why do you like this company?

It makes me feel safe! It's averaged 12% return over the past 10 years, it has an excellent return on investment, it makes a ton of money, it's very well diversified in both product and geography, it's sitting near a 52 week low, and no matter what, people will always need what it produces!

G, give me the details.

The growth numbers are not as exciting as GRMN or QSII but they make billions of dollars more!

G, what did it cost you?

I bought at $61.82 on 7/24/2007.