For the past year, investor share value has been disappointing, but superior long term returns lie ahead. Tough compettion ahead, but J&J will sustain new and expanded growth based on product development innovation and new acquisitions.
My time horizon is even longer than the political campaign period - and that's saying something.
If you believe that the JNJ will not be able to sustain a reasonable growth in earnings and dividends, you would be foolish to invest for the long term.
From my perspective, even our politicians will find it difficult to ruin JNJ's long term business provided that JNJ's employees focus their attention on the business rather than the stock price. JNJ has a great track record and I am willing to go with it.
Patience is not the issue. The issue is the Street's perception. Look, J+J has been and is a money machine. Lots of growth and lots of profit. Why does the stock sit still as it has? It is all perception. So, how do you change J+J's image on the Street? That is the CEOs job plain and simple. The performance is there, management needs to bend some ears at the investment houses or things are not going to change for this stock.
Personally, I am a lot happier with a CEO that is focussed on making good investments and returning cash to the long term shareholder rather than other kinds of efforts to promote the stock price. If the company can generate growing cash, earnings and dividends, I am willing to allow the rational investor to determine what they are worth.
--- but I am a long term investor interested in a consistently growing stream of dividends. A person who trades the stock probably has different needs for a CEO.