It is hard to say anything about McKesson that we have not said before — it is a high-quality business with extremely cheap shares.

The pharmaceutical distributor should earn around $15 in 2020 and will IPO its technology business, which will unlock another $20-30 of value. McKesson stock is not just cheap — it’s incredibly cheap. If we take the current $127 price and take out $25 for the technology business, we are paying about $100 for $15 of earnings — less than 7 times.

Wall Street glorifies companies that beat quarterly estimates by arguing that the long term comprises a lot of short terms. But beating earnings estimates for a few consecutive quarters doesn’t necessarily lead to long-term greatness. It assumes that significant changes to the business are visible in the reported numbers.

Today I am going to share with you an article I wrote after the January 2018 stock market volatility. It’s as relevant today as it was then. However, this time around you don’t have to strain your eyes; you can use your ears. Optimal Living Daily has turned my article into a podcast. Turn off your TV, shut down your brokerage website, relax.

I am 14 months into working on my new book, The Intellectual Investor, which is far from being finished. I have written fifty thousand words but have yet to find answers I am looking for, and thus the journey continues. Working on this book has been one of the most fulfilling experiences of my life. Because of it I am:

  • 11 months into not eating dessert (read my “I Don’t Eat Desserts” article here)

  • 6 months into working out twice a week with a trainer

When I write about VALUEx Vail I always catch myself sounding just like Tim Cook: “This is the best iPhone ever!” As the iPhone incrementally improves every year, so does VALUEx Vail. We don’t put any incremental R&D into our private value investment conference, but it gets better for one simple reason: We all become closer and closer friends (we had only five new attendees out of 40 this year). We heard 30 presentations over three days.