In the 1980’s, it was a high growth stock and it is still the world’s largest manufacturer of defibrillators. I had the stock in my personal portfolio. They have apparently done an outstanding job of integrating their acquisitions form the late 1990’s into the company and into Medtronic’s way of doing business.

Buying another company can be a real challenge particular when there are cultural issues at stake. Companies, like Wells Fargo, that learn how to do it can be very successful. I think that Medtronic has also figured it out. Their approach to management and the entire culture brings out the best in people. As a result, management turnover is very low.

I also like the areas of research they are focusing on like the spinal area and diabetes. The company has some pretty exciting acquisitions in those two fields and it is well positioned in most of its markets. Even so, the stock is not performing well relative to St. Jude. It is currently on my watch list and it may be one that needs to be replaced.

Q: You mentioned that you rarely hold stocks as long as two years. Why is that?

A: It’s not that I don’t like to, it just seems to happen that way. Dell Computer was one exception, but they are rare. Given that I have a 75% turnover rate and 20 stocks in my portfolio, 15 may turn over during the year.

I don’t view myself as a high turnover manager, but yet I am not a buy and hold manager either. I’m certainly not reluctant to act on a surprise coming from one of the companies I am holding, or news of changing conditions in an industry.