16 Comments
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Joshua Clauss's avatar

Interesting insights! I believe the essence of value investing lies in assessing a company's competitive edge and capital efficiency. How do you perceive the impact of these aspects on long-term investment prospects?

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Herb Greenberg's avatar

For CVS? Won't know until you start seeing the details.

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Dan Munro's avatar

Interesting development ... but raises new question.

Can CostPlusDrugs compete with CVS? Why would you want to?

Footnote: PBMs are easy targets - but for every $100 we spend on prescription drugs - about $5 goes to PBMs (generic/brand combined) - and their profit margin is even less. (~2%)

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Herb Greenberg's avatar

Of course, maybe CVS buys CostPlus. Mark has gone out of his way not to comment on this.

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Dan Munro's avatar

Certainly possible - but I'm not sure it has enough market share - and nothing really proprietary.

When elephants fight - the grass gets trampled ;-)

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Herb Greenberg's avatar

You would know better than most!

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Joan Wagner's avatar

Is this move by some of the pharmaceutical industry known as “the Biden Effect “? Good job!

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Josh Slocum's avatar

Enjoyed the insight. I have been using Cost Plus for a while and enjoy their prices and transparency. Enjoyed meeting you both on your recent travels.

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Herb Greenberg's avatar

Same here, Josh. Let's try to connect separately.

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Sally D's avatar

Thanks for the update

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Ray Cornwall's avatar

Great info!

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Fritz Garrecht's avatar

As always Herb, you get to the heart of important issues … kudos

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Rex Fermier's avatar

We can only hope that this is the start of more reasonable prescription drug pricing.

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Abb b's avatar

I saw the headline but now I really understand what’s going on. Thanks!

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John Schwartz's avatar

Herb--superb! keep up the great work, old friend!

John Schwartz

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Josiah M. Daniel, III's avatar

Excellent information for everyone, so thank you.

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