JNJ is a great long term hold, but that doesn't mean that it should be purchased at any conditions. It's too expensive now. Valuation will come down eventually, and even if it trades higher when it's fairly valued, I'll be more comfortable buying it then, when it provides a better margin of safety. The example below illustrates how purchasing at a high valuation can drag return. Sure, in the long term it will be profitable, but buying high carries unnecessary risks and it drags return overtime. There are better opportunities in the Health Care sector.