Biomet Trades No More

Biomet was taken off the market yesterday for $46 a share. Here’s a look at the stock’s amazing run. In 23 years, the stock went up by more than 200-fold.

I have to do a little housekeeping for my Buy List. This will be a dull post, but since we now know how important integrity is to our returns, I want to be as thorough as possible.
I’ll go over the rules again. At the start of each year, I pick 20 stocks for the Buy List. I’m not allowed to make any changes during the entire year. I assume a portfolio of $1 million, with $50,000 invested in each position.
For track record purposes, I’m going to take the Biomet proceeds and invest them equally in the 19 other stocks. I thought about keeping the proceeds in cash until the end of the year, but that doesn’t seem right.
At the start of the year, the Buy List had 1211.5338 shares of Biomet at $41.27. With the $46 buy-out price, that gives us a total of $55,730.5548. Divided 19 ways, that means we invest $2,933.1871 in each stock.
Here’s how I calculated the new number of shares:
Stock……..9/25 Close……..New Shares…….Starting Shares……..New Total
AFL………….$55.94………….52.4345………….1086.9565………….1139.3910
APH…………$39.22………….74.7880………….1610.8248………….1685.6128
BBBY………..$33.20………….88.3490………….1312.3360………….1400.6850
DCI………….$41.52………….70.6452………….1440.5071………….1511.1523
DHR…………$83.82………….34.9939……………690.2264…………..725.2203
FDS………….$66.10………….44.3750……………885.2691…………..929.6441
FIC…………..$36.11………….81.2292………….1230.0123………….1311.2415
FISV………….$50.46………….58.1290…………..953.8344………….1011.9634
GGG………….$38.10………….76.9865…………1261.9889………….1338.9754
HOG………….$46.51………….63.0657………….709.5218……………772.5875
JOSB………….$35.08………….83.6142………..1703.5775………….1787.1917
MDT…………..$56.26………….52.1363………….934.4048……………986.5411
NICK………….$8.93………….328.4644…………4237.2881………….4565.7525
RESP………….$48.74…………60.1803………….1324.5033………….1384.6836
SEIC………….$25.92………..113.1631………….1678.9792………….1792.1423
SYY…………..$34.70………….84.5299………….1360.1741………….1444.7040
UNH………….$49.48………….59.2803…………..930.5788……………989.8591
VAR…………..$39.09………….75.0368………….1051.0826………….1126.1194
BER…………..$28.99…………101.1793…………1448.8554………….1550.0347

Posted by Eddy Elfenbein on September 26th, 2007 at 9:58 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.