Novo Nordisk - Investment Thesis
Why Warren Buffett and Berkshire Hathaway invested in Novo Nordisk.
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Novo Nordisk - Investment Thesis
Financial Metrics
| Metric | Novo Nordisk | Fundsmith Portfolio Avg | Eli Lilly (Competitor) |
|---|---|---|---|
| Revenue Growth | 25% | — | ~20% |
| Gross Margin | 85% | 64% | ~75% |
| Operating Margin | 44% | 30% | ~35% |
| Return on Capital | 69% | 30% | ~25% |
| P/E Ratio | 28x | — | 75x |
| Free Cash Flow Yield | 27% | — | ~3% |
Competitive Advantages
1. Manufacturing Efficiency
"Making these drugs is non-trivial – we
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