I have decided to sell my position in $CVS (-0,19%) and reallocate the capital elsewhere.
The main reason for me is the increasingly complex business model. $CVS (-0,19%) It combines pharmacy, insurance and healthcare services. Exciting at first glance, but difficult to understand in practice and not quite as transparent as I would like.
In addition, I don't particularly like the development of debt at the moment. After a phase of debt reduction, debt has recently risen again, while free cash flow has stagnated or fallen slightly. In my view, this worsens the financial leeway and increases the risk.
Added to this is the ongoing pressure on margins in the healthcare sector and the regulatory risks in the USA, which should not be underestimated. At the same time, I currently lack a clear growth story that will sustain the case in the long term.
For me, the $CVS (-0,19%) no longer fits in perfectly with my approach, which is more focused on predictable cash flows, clear business models and sustainable competitive advantages. I am therefore using the sale to reallocate capital to companies where I see higher quality and better visibility.
