McKesson Corporation
Thesis
McKesson is a drug distributor with a strong market position, holding over 92% market share alongside two other large players. The company is expected to benefit from growth in healthcare information technology and has a significant amount of cash that can be deployed for further growth or stock repurchases, making it a compelling investment opportunity.
Did it work?
The long thesis on McKesson decisively played out: the stock returned +8408.5% since the pitch, an extraordinary gain in the direction the thesis predicted. The thesis's core dynamics — McKesson's dominant ~92% market share position in drug distribution, growth in healthcare information technology, and cash deployment for growth or buybacks — are consistent with a business that compounded shareholder value massively over time. Even without knowing the exact time elapsed, a return of this magnitude unambiguously confirms the long thesis.