Becton Dickinson (BDX): On Our Radar First

It was no fluke that we pointed out Becton Dickinson (BDX) on our May 4, 2009 posting. Now we find that Warren Buffett was acquiring shares of BDX on June 30th at a price that was 16% above the price on May 4th. Using the strategy that has been outlined numerous times on this blog, I have noticed that, whenever Buffett has been reported buying domestic stocks they are companies that I have either purchased or researching almost 50% of the time. Too bad we recommended selling the stock on May 31st after an 11% gain. The good news is that if you didn't catch the boat the first time around then you can still buy the stock below the sell recommendation price.

When a company, in this case BDX, promises a dividend of 2.17% and the gain in the price is 500% what you could have earned if you held the stock for a whole year then the best thing to do is move on. This blog makes no illusions about the realities of the stock market. Research recommendations are meant to alert investors to potential long term opportunities while sell recommendations are intended to deal with the short term reality of the market. Touc.

"If people with either large or small capital would look upon trading in stocks as an attempt to get 12 per cent per annum on their money instead of 50 per cent weekly, they would come out a good deal better in the long run."

William Peter Hamilton. The Stock Market Barometer. 1922. p. 257.