I had the pleasure of interviewing Andy Craig, a biotech and life sciences specialist.
Andy is launching the Conviction Life Sciences company where investors can take part in this new venture.
It is a “reaction to a structural opportunity which we think is very rare” targeting 20% annual returns on average.
Disclaimer: Nothing in this article or video should be considered financial advice. Please do your own research before making any financial decisions.
There are structural reasons that biotech and life sciences companies can be great investments right now. Non-US companies, particularly, trade at cheap levels and are on Andy’s radar.
In this interview we cover:
- What life sciences and biotech really mean
- Life Sciences current state (curing cancer, the cost of developing new drugs, clean power generation etc)
- How investors can benefit from the rising biotech trends
- Why this market is so undervalued (and is this a value trap?)
- How much to allocate in high-risk high reward investments
I hope you will enjoy the interview as much as I did. Here is the YouTube video:
Why UK Biotech stocks are a great buy
UK Biotech stocks are structurally undervalued and can be a great buy for the following reasons:
- Generalist Fund managers ignore small companies that cannot be valued with traditional economics (DCF etc)
- Big American funds are too big to bother investing in small foreign companies, especially those that require a lot of research and are high risk
- The non-US biotech companies have been very volatile with mediocre returns so far. The industry’s reputation took a hit.
- Technology has made biotech research very cost-efficient compared to 20 years ago. This unlocks opportunities.
- The COVID pandemic offers a tailwind for investing in the biotech sector. More money flowing in means more research and attracts people and more capital.
Andy is a best-seller author of the book How to Own the World and a repeating guest.
We have talked about investing in stocks, property and gold before here:
Thank you for watching!