The Rising Influence of Rising Affluence

[DewDiligence]

ZBH/SYK/SNN—…reacting to Covid-19 uncertainty after initial positive Q4 report reactions. What are your thoughts wrt to procedure volume for artificial joint replacements procedures for the remainder of the year in the USA and EU?

The kinds of elective procedures that drive product sales for these companies will grind to a halt if COVID-19 goes pandemic. Moreover, these companies derive a material proportion of sales and profits from emerging markets and Asia in particular.

One of the portfolios I manage has a position in ZBH, dating back to Zimmer’s 2001 spinoff from BMY, where the cost basis is so low that I don’t want to take the tax hit from selling. If not for that, I would probably lighten up.