Unlike many of the high P/E stocks in this sector, our largest holding—CVS Health—sells at only 10 times expected earnings. In November, CVS (NYSE:CVS) merged its drugstore business with the health insurer Aetna, based on the belief that sharing facilities and information across the two businesses would lower health care costs and increase profitability. The stock market doesn’t appear to give it any credit for that possibility.
From Bill Nygren (Trades, Portfolio)'s Oakmark Fund fourth-quarter 2018 market commentary.
