Clearly both of these well regarded, and vast investment houses… have an increasingly positive view of Merck, vis-a-vis the peers in the mega cap pharma space.
In fact, there was a time when most houses were slowly decreasing their exposure to Merck (about nine years ago). Then for four years, the largest houses held steady — at around 6.5%. So we stopped covering it.
But as Keytruda has blasted past all projections, quarter after quarter — and Merck has steadily climbed from the $45 range, ten years ago… to around $109 as I write this… it is too good to ignore — with a fat (and increasing!) quarterly cash dividend, to boot.
But to be clear, Vanguard, now at just under nine percent of Merck’s outstandings… is not likely to go over 10%. Should it do so, it would have immediate SEC reporting obligations, on each buy-in or sell off. And that’s a headache a passive investor doesn’t need. So — expect both of these institutional investors (here is Blackrock’s latest) to max out at around 9.8%, even if Merck continues its winning ways. Steady state will be no negative reflection on Merck, once each reaches near the immediate reporting thresholds.
Now you know — and a Happy Valentine’s — to one and all of good will!
नमस्ते
Powerline Lies... 