Replies to post #21145 on The Rising Influence of Rising Affluence

[DewDiligence]

(ABT/ZBH/SYK/etc)—At what level would you consider adding to ZBH and the like.

I probably won’t add to ZBH at any price. I have a large position in ABT, which derives ~40% of sales and profits from medical devices (#msg-153423304). Due to the size of my position, ABT provides enough participation in the medical-device sector all by itself, IMO.

Although ABT could yet take a big hit from COVID-19, ABT’s medical-device business is less beholden to elective surgery than ZBH’s and SYK’s.

[DewDiligence]

ZBH/Addendum to #msg-154160133—On the 3/2/20 RJ webcast, management said elective procedures in China were down 80-90% during February, and ZBH expects no improvement in March. In normal times, China comprises 5% of ZBH's sales.

If this webcast had been held today (only 3 days later!), the discussion probably would've focused on the US market rather than China.