In fact, there was a time when most houses were slowly decreasing their exposure to Merck (about nine years ago). Then for four years, the largest houses held steady -- at around 6.5%. So we stopped covering it.
But as Keytruda has blasted past all projections, quarter after quarter -- and Merck has steadily climbed from the $45 range, ten years ago. . . to around $109 as I write this. . . it is too good to ignore -- with a fat (and increasing!) quarterly cash dividend, to boot.
But to be clear, Vanguard, now at just under nine percent of Merck's outstandings. . . is not likely to go over 10%. Should it do so, it would have immediate SEC reporting obligations, on each buy-in or sell off. And that's a headache a passive investor doesn't need. So -- expect both of these institutional investors (here is Blackrock's latest) to max out at around 9.8%, even if Merck continues its winning ways. Steady state will be no negative reflection on Merck, once each reaches near the immediate reporting thresholds.
Now you know -- and a Happy Valentine's -- to one and all of good will!
नमस्ते
