The "Risky" Health-Care Company Warren Buffett Is Quietly Buying - www.fool.com

Even the federal government can't stop this health-care powerhouse from making investors like you wealthy

You've probably heard that successful investors avoid stocks of risky companies.
That's a lie.
No one has ever achieved life-altering returns with this strategy.
In fact, the richest investors -- guys like Warren Buffett and George Soros -- made their billions by seeking out risk. 
They buy shares of companies other investors perceive to be risky, knowing that if the story and perception change, they'll be rewarded tenfold for this risk.
Buffett's successfully done this with companies like Geico and American Express...

And right now, there's one "risky" company both Buffett and Soros are moving in on.

But before I share this company and its NYSE ticker with you, let me set the stage...
President Obama and Democratic members of Congress are attempting to reform America's health-care industry.
To pay for this endeavor, they'll add a slew of new taxes on high earners, corporations -- even medical device use.
Political arguments aside, this will no doubt change the health-care industry. And it's why investors are punishing stocks of health-care companies...

But not every health-care company is going to disappear!

In fact, many companies will emerge from this debacle virtually unscathed and will continue to grow -- regardless of the billions of dollars that will be added to the federal government's budget.
Now I'm not going to fool you by saying that there's a lot of "sure deals" heading into this brave new world of government-run medicine...
But companies that provide the "picks and shovels" will, no doubt about it, continue to generate more business.
That is, the companies providing the tools doctors and nurses use daily will continue growing, especially as baby boomers continue aging.
Which makes it clear why both Buffett and Soros are scooping up the stock of the company I'm about to share with you -- which operates in this segment.
Click below to see the company's name and ticker...

The Health-Care Play That's Worth the Risk

This is the stock you need to buy before Obamacare becomes a reality

The company Buffett and Soros are busy buying shares of is Becton, Dickinson [NYSE: BDX], or BD for short.
BD makes products like needles, scalpels, and diagnostic tools -- which are needed on a continual, recurring basis for use in insulin systems, blood donations, blood transfusions, surgery, etc.
This steady, predictable demand makes BD's medical division a cash cow. And that has enabled it to invest heavily in researching and developing new products.
Which has led to two other divisions: diagnostics and biosciences. In these, the products and revenue streams vary: Some are recurring, others are one-time in nature, and still others are razor-and-blade in nature.
Each of these three BD divisions is a market leader.
Which is why returns on invested capital have consistently hovered above 20%. And why sales and net income have grown at a compounded annual growth rate of 8% and 18%, respectively, over the past five years.
This market-leading position is also why BD boasts such a solid balance sheet. Total debt-to-equity sits at a manageable 22%, and cash-on-hand covers roughly 70% of BD's debt obligations.
Now it's true that the health reform bill plans to tax medical devices...

But this isn't something to be worried about

That's because the company is expanding further and further into emerging markets.
In fact, more than half of its $7.4 billion in revenue last year came from outside the U.S.
Which means that a smaller and smaller portion of BD's growing revenue will be threatened by the proposed tax on medical devices.
This emerging market opportunity is also why the company believes it can achieve long-term revenue growth of between 7% and 9%.
Even if you take a more conservative assumption of 6% to 8% growth, shares of BD are worth between $92 and $100 per share.
The current bill proposes a 2.3% excise tax on medical device companies. Some of this BD should offset with increased volume and price increases. But even if you dock their operating margins by 1.5 percentage points, the stock is still worth $90.
Not bad for a century-old company trading just above $75 today...
It's no wonder that Forbes named this company one of the "New Blue Chips" and Fortune called BD one of the "best stocks to retire on."
What's more, BD has a long history of taking care of its shareholders. In fact, it has paid a dividend since 1926. And it has increased its annual dividend for 37 consecutive years!
BD also bought back over $550 million in shares last year alone.
All of this is exactly why BD is the kind of "risky" investment you should feel comfortable making -- and should reward you handsomely, alongside Buffett and Soros, over the next 5 to 10 years.