Within healthcare, our largest position is Quest Diagnostics (DGX, Financial), a leader in independent lab testing and diagnostics. Quest offers its lab services at a fraction of the cost of hospital labs, which constitutes a strong cost-savings value proposition to new and existing customers. It is not surprising that by virtue of the value Quest creates, the company is increasingly serving as an outsource partner to hospitals and healthcare networks across the U.S. We believe Quest's market is very sticky and only getting larger. The cost savings accruing to Quest's customers should bode well for the long-term success of the business.
From Chris Davis (Trades, Portfolio)' Davis Appreciation and Income Fund annual 2021 review.
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