Keen Penny Sleuth readers will have noticed there’s a lot happening at Agora Financial UK Towers at the moment. I’ve been spinning plates…
We’ve all been spreading the word about Jim Rickards’ new book and newsletter – if you’ve missed that one, click here…
I’m about to launch my own brand new subscription penny share newsletter. I wrote about that one on Friday…
… And whenever I’ve had a spare moment I’ve been bigging-up my colleague Tom Bulford, the editor of the superb Breakthrough Biotech Alert.
At any normal time I’d have taken more time to update you on what’s happening with Tom, because he’s doing some great stuff at the moment. He’s been working on a new report for months, and it’s finally been cleared for takeoff next week.
So I’m making up for my inattention. Starting today!
If you’re not familiar with biotech, or with Tom Bulford himself, you should take a few minutes to read this short essay. It’s an extract from a longer piece Tom wrote recently, in which he explains why he decided to go “all in” on biotech investing three and a half years ago.
Why I dedicated myself to biotech
by Tom Bulford
Right now a massive bull market is raging on the stock market. ‘What!’ I hear you say? ‘I have not noticed it. ‘After all the FTSE index is barely higher than it was fifteen years ago. Nobody I speak to is making a fortune on the stock market!’
So you are listening to the wrong people! You are listening to people who are investing in the banks, the supermarkets, the miners, all hopelessly weighed down by the baggage of their past errors and their over-expansion in a crowded marketplace. If you want to make money on the stock market you have to look ahead. You have to make a bit of a leap.
Back in 1999 a few brave people took a leap by investing in internet stocks. Nobody back then knew much about Google or Apple or eBay. We did not have smartphones, we did not shop online, we were not ‘always connected’ as we are today. Back then only the smartest people could envisage the world as it is now. And it is those people who had the foresight and were prepared to back it with their own cash, who are today’s multi-millionaires, playing golf at smart country clubs and cruising the oceans.
The biggest bull market on the planet
OK, you know that much and I am just rubbing your nose in it. So what about that massive bull market I was just talking about? Well, here it is:
That’s the First Trust NYSE Arca Biotech Index fund, which tracks biotech stocks listed in the New York Stock Exchange.
I am going to briefly explain to you what I mean by biotechnology and stay with me for that, because then I am going to tell you why it is going to make fortunes no less than those made from the internet boom and how you could be cruising or golfing in just a few years’ time.
What exactly is biotech?
OK, so what is this biotech thing? In a nutshell it is about our power to engineer the natural world so that it does the things we want it to do. It is about engineering the human body so that we don’t get ill and live to a hundred. It is about engineering plants so that we can feed the world. It is about easing our dependence upon fossil fuels. It is about learning from nature, and learning how to manipulate the natural world.
Nothing new in that, is there? But here is the reason why biotechnology’s time is NOW. If you want to change and control anything you first of all need to understand how it works. After centuries of effort we have a pretty good idea of how inanimate things like wood and metal and plastic react in different circumstances. And thanks to this we have sent men to the moon and I could pick up my mobile phone right now and have face time with my brother in Australia (except that he is probably fast asleep and would not answer).
You get the point. We know a heck of a lot about physics and chemistry. We know a lot less about living things, which is why we struggle to treat disease and why food crops wither in the field. But today we are learning about the mechanism of life at an astonishing rate.
I’m determined not to miss this boom
There is so much more that I want to tell you! In this letter I can only sketch the outline of the biotechnology revolution. I have not mentioned fascinating areas such as gene therapy, nanoscience or molecular diagnostics although readers of Breakthrough Biotech Alert will know all about these.
Maybe these terms mean little to you. For sure biotechnology has a jargon all of its own. Experts talk about disease pathways, about bioinformatics, about frame shift mutations, about serological polymorphisms and histocompatibility. It is not easy to get your head around this kind of stuff, but you need not worry – I’ll do it for you!
I want to explain biotechnology to you, and I am driven by one recollection. In 2000, when I was a fund manager in the City of London, analysts used to come and talk to us about bits and bytes and middleware and connectivity and although we nodded our heads wisely we did not truly understand what was being said.
By the time we found out that these were the ingredients of today’s unbroken connectivity and unlimited on-line information, entertainment and commerce the bird had flown. Those companies forged in the white hot atmosphere of Silicon Valley at the turn of the century had already provided their early investors with fabulous returns, leaving the latecomers to tag along for far more modest gains.
I missed out on the great internet-inspired bull market but I am damn well determined not to miss out on this one! Every week I go to biotech conferences, meet the experts and read a ton and I distil it all for you. If you take the Breakthrough Biotech Alert every week you will gain an invaluable lead over other investors who simply do not understand what is going on and are not prepared to make the effort to find out.
Yours in biotech,
for Breakthrough Biotech Alert