Many moons ago, okay 1994, I read Beating the Street by Peter Lynch; as in Merrill Lynch. Peter is #2 in my financial manic mind, second only to Warren Buffet, CEO of Berkshire Hathaway, Inc., the “Oracle of Omaha.” Peter not only beat the street, he beat into my mind that you should only buy what you know. Is this company doing great things in your world? You live, eat and breathe dentistry so that is where you should invest.

Are you in love with your DIAGNOdent? I couldn’t, wouldn’t, and you shouldn’t practice without one. DIAGNOdent gets your patients involved in the ultimate co-diagnosis and discovery exam as you teach your patients the difference between pit and fissure decay versus interproximal flossing decay. Who makes DIAGNOdent? KaVo, which is part of Danaher Corporation (NYSE:DHR). In the last three years Danaher has basically doubled from $30 to $55 with a price-earnings ratio (P/E) of 21.

I am a 1987 graduate of one of the nation’s best dental schools, the University of Missouri – Kansas City. Missourians are classic Midwestern, salt of the earth honest people who work sun up to sun down. Missouri is home of Young Innovations, Inc. (NasdaqNM:YDNT). If you can go through your supply cabinet and not find anything from Young Innovations, your dental office is probably being run by Fred, Wilma, Barney, Betty and Dino. From prophy cups and paste to infection control Young Innovations continues to innovate some of the hottest dental products in the industry. During the last five years, its stock has basically gone from $17 to $40 with a P/E of 20.

How many rotary endo root canals do you do a year? If you use K3 files by SybronEndo, then this company is obviously doing great things for you and your patients; so buy part of the company with stocks. In the last two years Sybron Dental Specialties, Inc. (NYSE:SYD) has gone from $25 to $40 with a P/E of 22. If that doesn’t make you drool, you must be using Sargenti.

Let’s say you prefer using rotary endo at 300 rpm with DENTSPLY Tulsa’s ProFile .06 tapered files. Then load up on DENTSPLY International, Inc. (NasdaqNM:XRAY). In the last five years, it has basically gone from $20 to $60 with a P/E of 38. Dentistry is on fire as it continues to sail forward at twice the rate of growth as America’s gross domestic product (GDP) and/or inflation.

Who do you buy your supplies from? In the last three years, Patterson Companies, Inc. (NasdaqNM:PDCO) has basically gone from $20 to $33 with a P/E of 25, not to mention the stock split in 2004. Have you ever wondered how much Patterson stock you would have to purchase so that your stock appreciation would equal more than your monthly supply bill? Dentists e-mail me everyday asking if I think they should buy a CEREC 3. I always tell them to take the $100,000 and buy the stock first. If and when the stock doubles you can cash out half and get the CAD/CAM for free!

Do you buy your supplies from Henry Schein, Inc. (NasdaqNM:HSIC)? In the last three years, Henry Schein has basically gone from $20 to $40 with a P/E of 30. Henry Schein has gone global in a big way and now proudly serves practitioners in more than 125 countries and regions around the world. I have seen first hand Schein’s impact when lecturing in Brazil, Poland, England, Italy, Australia, and New Zealand.

All of these dental companies have decades of solid growth potential. Today, the world has over one million dentists and every last one of them wants to save their patients’ teeth! Sooner rather than later United States/Canadian style dentistry will be standard of care in all 191 countries registered at the United Nations; 193 if you consider Taiwan and Vatican City countries. And for the disclosure, yes, I own all of these stocks (DUH) and I hope I get more for Valentine’s Day.

Dentaltown Magazine strives to provide our readers with accurate information. The stock prices quoted were current at the time the magazine went to print and some numbers have been rounded for convenience.