CVS Caremark (NYSE:CVS) is the newest position in the portfolio. The position was initiated at an average cost of $33.50 and now occupies 8% of the portfolio. It represents the largest purchase since the Leucadia purchase in July 2010 resulting from a very deep analysis of its business and industry dynamics. My wife thought I was getting ready to take some exam during my research, because I spent non-stop six days a week staying up till 4:00 am for about a month.
CVS Caremark operates the largest retail drug store and the second largest PBM (prescription benefits manager) in the nation. It is the largest purchaser of prescription drugs in the world making it the Wal-Mart of the prescription drug supply industry.
To understand briefly on why this position was initiated, refer to the Summary section of my report at www.gurufocus.com (submitted for their monthly Value Contest).
The full-report is also published at the link above, but to go through the report in its entirety, you will need patience along with a cup of coffee. The 40 page long report may seem over-the-board to some people, but when you purchase a stock, somebody else is on the other side of the trade, and only one of you can be right. It better be you if you are putting 8% of your net worth into the purchase.
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