Staying Invested in Companies Like McKesson

The podcast episode also emphasizes the importance of staying invested in undervalued companies despite short-term challenges. McKesson, a major drug distributor, was initially owned by growth investors, resulting in a decline in stock value when the growth slowed down. However, the speaker believed in the company's future potential and bought it during this transitional phase. Despite the stock price declining further due to lawsuits against the drug industry, the speaker held onto the stock, knowing the long-term cash flows hadn't changed. Eventually, the lawsuits were settled, and the stock tripled in value. This experience teaches the lesson that being stubborn when a company is undervalued can lead to significant returns in the long run.