Cooling geopolitical tensions helped ease investor sentiment this morning. Stocks surged in early trading after the Russian Defense Ministry said it had begun to withdraw Russian troops from the Ukrainian border. Volatility could increase as the story develops.
One area of the market that stocks can be found to produce 10x, even 20x returns, regardless of what’s happening elsewhere, is biotech. Looking at the performance of the past ten years, if the biotechnology industry were a sector, it would be the best performing one. Over the past decade, biotech stocks have returned 524%. That beats every last sector, it beats the broader health care sector by 200 percentage points, and it’s nearly double the S&P 500’s total return in that same time frame.
There’s clearly money to be made in the discovery of new treatments for anything from the flu to cancer. But biotech stocks carry substantial risk. While positive data from a drug trial could send their stocks soaring, a setback or failure can crush their returns, making them difficult buy-and-hold investments.
Today we’re highlighting a rare, buy-and-hold biotech investment that provides ground floor access to the innovators of tomorrow, along with their potential nose-bleed returns, while minimizing risk.
For those looking for a long-term investment in biotech with less risk, biotech ETFs offer an answer. Instead of betting on individual drugs or companies, an ETF allows you to spread out risk across dozens or even hundreds of firms at a time.
Jeff Bezos Just Poured $10 Billion Into This…
Not many people know this story… But in 1998, Bezos invested $250,000 of his own money in Google, when the company was just getting started out of a garage in California. When Google went public in 2004, that $250,000 investment translated into 3.3 million shares of Google stock. Nobody knows if Bezos has sold any shares. If he hasn’t, today they’re worth more than $5.6 billion.Jeff Bezos is betting big on a new trend. This time he’s planning to invest $10 billion of his own money in this exciting new trend. That’s 40,000 times more money than what he invested in Google. That’s how big he thinks this could be. [Full Story…]
The Principal Healthcare Innovators ETF (BTEC) is a promising fund geared toward finding smaller, innovative companies that might get overlooked, focusing on active investment in early-stage R&D.
BTEC seeks out health care firms from the Nasdaq US Benchmark Index but excludes the top 150 securities by market size while also excluding companies with low trading liquidity. How it identifies “innovators,” however, might seem a little unorthodox: Specifically, it seeks out “non-earners by means of having negative earnings over the prior 4, prior 8 or future 4 quarters at least half of the time.” In other words, it selects companies with inconsistent or negative profits, the idea being that, for now, they’re pouring every last cent into R&D. BTEC then picks the best-ranked 150 to 200 companies based on its scoring measures, then weights those stocks by size, with no stock exceeding 3% in rebalancing, which happens twice a year. BTEC holds BioMarin Pharmaceutical (BMRN), Seattle Genetics (SGEN), and Exact Sciences (EXAS), among others
- Net Assets — $89.98 million
- Yield — 0.00%
- Expense Ratio — 0.42%
Where to invest $1,000 right now...
Before you consider buying BTEC, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not BTEC.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
New in Biotech:
The Guardian: “New pill could spell the end of all disease.”
This pill is set to completely change the lives of millions of Americans.
And because just one tiny Brisbane company has virtually monopolized this technology with 140 foolproof patents…
Investors who get in on the ground floor stand to become rich beyond their wildest dreams. [Full Story…]