Danaher Corp. (DHR)

A multi-industrial. Unique in that they have the industrial exposure as well as a healthcare technology segment. Both segments have very good growth prospects. One of the best management teams he has ever met. CEO is retiring, but COO is stepping in, so it will be a smooth transition. Historically, the company has given 11%-12% EPS growth, 15% free cash flow growth and 15% dividend growth. Not expensive. They can do an M&A up to about $12 billion. Accruing so much cash on the balance sheet that you are either going to get a special dividend or they will go out and do a large-scale M&A. Yield of 0.51%. Feels the stock could be worth north of $85.

In 5 major areas. Dental, environmental services, industrial services, test and measurement and life sciences. Great company. All these areas are interesting. Roughly 25% of each area is in emerging markets. Finds it expensive at 15.2X next year’s earnings per share. He prefers a more focused view, for example water, which this company has a piece of.

Interesting company and has been a good stock. Trading at about 15X earnings. Growing revenues in the single digits, which always worries him. Well diversified industrial.