May 19, 2009 (FinancialWire) Dr. Joe Duarte (http://www.joe-duarte.com), recently noted: The S&P 500 (SPX) is struggling, but Johnson & Johnson (NYSE: JNJ) is showing some relative strength as Warren Buffett has been buying shares of late.

Duarte added: The Obama administration is about to get into high gear on health care reform, making Johnson & Johnson’s earnings stream potentially vulnerable.

JNJ is not just a drug company, it’s a huge health care conglomerate whose footprint is visible all the way from the over-the-counter market into the most sophisticated surgical arena. And while that’s been the company’s strength in the past, you have to wonder whether that’s its Achilles’ heel when cost-cutting and, in the eyes of some, health care rationing become the norm.

Yet, a good look around revealed that Warren Buffett has been adding to his JNJ holdings. Buffett’s stock vehicle Berkshire Hathaway increased its JNJ holdings by 13.62%, according to recent SEC filings. Buffet bought the stock at prices between 47.97 and 58.56. The stock closed at 55.41 on 5-18.

Duarte’s conclusion: To be sure, Buffett’s stock picking record in the short term, especially recently has not been sterling. Yet, his long term record is as good as there is, which suggests that a position in JNJ might be worthwhile if you have some time.

Make sense of today’s nonsense. Get Doctor Joe Duarte’s Market I.Q., at:

http://www.joe-duarte.com/free/order_choices.asp and subscribe to www.joe-duarte.com, for its daily energy review and stock picks.

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Duarte partners with the Investors Resource Center at Investrend Information (http://www.investrendinformation.com).

Duarte’s IntelligentForecasts.com (http://www.intelligentforecasts.com) provides free news coverage and analysis, and his daily articles and news summaries offer recommendations and analysis for ETFs, and individual stocks in the technology, health and biotechnology, and energy sectors. Duarte has combined expertise in health care, energy, and the effects of politics and global intelligence on the financial markets offer a unique blend of insight and information to thousands of active investors and political and intelligence aficionados around the world on a daily basis.

He is the author of: Futures And Options For Dummies, Successful Energy Sector Investing, Successful Biotech Investing and co-author of After-Hours Trading Made Easy. In early 2001, in Successful Energy Sector Investing, he correctly predicted that Venezuela’s political problems could lead to an energy crisis in the United States. He has also appeared as a weekly guest on Market Mavens Radio and has logged appearances on KNX radio in Los Angeles, Financial Sense.com radio, and Wall Street Radio.

One of CNBC’s original Market Mavens, Dr. Duarte has been writing about the financial markets since 1990. His articles and commentary have been featured on CBS Marketwatch, Barron’s, Smart Money, Medical Economics, and in Technical Analysis of Stocks and Commodities magazines. In 2003, Doctor Duarte received second place, in the professional section, of the Medical Economics Investment Challenge with a 12-month return of 42%.

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