Workflow
Risk - Reward Balance
icon
Search documents
Can This Unstoppable Vanguard ETF Make You a Millionaire?
The Motley Fool· 2025-09-03 00:00
This fund could help you earn well over $1 million with next to no effort on your part.Close to 40% of U.S. adults don't believe they'll ever be considered "wealthy" in their lifetime, according to a 2025 survey from Charles Schwab, and 27% don't think they'll be "financially comfortable" either.While building wealth isn't necessarily easy, investing in the stock market is one of the most effective ways to make a lot of money over time. Exchange-traded funds (ETFs) are a particularly good choice for those s ...
Is Merck Stock About To Crash?
Forbes· 2025-06-03 12:25
Core Viewpoint - The comparison between Johnson & Johnson (J&J) and Merck highlights the trade-offs in investment decisions, particularly focusing on growth potential, stability, and the impact of market exclusivity on revenue [1][2][3]. Group 1: Company Performance - Merck's average revenue growth is nearly 10%, significantly higher than J&J's 4% [1]. - Merck's operating cash flow margins are 33%, compared to J&J's 28%, indicating more efficient conversion of revenue into free cash flow [1]. - Keytruda, Merck's leading oncology drug, generated $29 billion in sales last year, accounting for nearly half of Merck's total revenue [2]. Group 2: Market Challenges - Merck is set to lose U.S. market exclusivity for Keytruda in 2028, which poses a risk of a steep decline in revenue [2]. - Sales of Keytruda are projected to peak at around $36 billion by 2028, but a rapid decline to under $20 billion is likely once biosimilar competition enters the market [3]. - Historical data shows that similar drugs, like AbbVie's Humira and Roche's Herceptin, experienced sales drops of nearly 60% within two years post-patent expiration, indicating potential vulnerability for Merck [3]. Group 3: Investment Strategy - The importance of building a resilient investment portfolio that balances risk and reward is emphasized, with a reference to the Trefis High Quality portfolio outperforming major indices [4]. - Investment decisions should consider the relative attractiveness of stocks like J&J compared to cash accounts or S&P 500 ETFs, assessing expected returns against potential risks [5]. - Using Merck as an "anchor" asset can help evaluate the risk-reward dynamics in investment choices [5].