3 Things About McKesson That Smart Investors Know

Even if you've never heard of , (NYSE: MCK) you've almost certainly experienced the benefits of the healthcare supplies it distributes. But this company does far more than move goods from one place to another; it gives the healthcare system the raw materials it needs to facilitate good health outcomes. 

And that means it has the potential to be a relatively safe investment over the long term. Before you take the dive and buy shares, however, it pays to know a few critical things about this business that smart investors are already aware of, so let's check them out.

McKesson is perhaps the single most important supplier of medical goods and pharmaceuticals in the U.S., bringing in $263.9 billion in sales for 2022. At the same time, its profit margin of 1.1% is incredibly narrow, so maintaining a massive scale is necessary to generate significant amounts of capital to return to investors. And smart investors appreciate that the company's scale confers a few powerful advantages that serve to protect its market share from its competitors, especially against any new entrants to its markets.

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Source Fool.com