Mon, 18 Aug 2008
8th Podcast – Stephen
The biotechnology sector is pretty dynamic and very interesting for investors. Innovative and exciting, it’s also an expensive business to be in so there are plenty of barriers to entry for potential competitors. The sector offers defensiveness and yet volatility; growth and yet value. After all, an aging population together with growth in personal wealth across global emerging economies means increasing demand for years to come, while P/Es are at their lowest point in a decade. David has picked a biotech this week but I think that’s pretty difficult to do. There are some good funds in this area which are worth a look, but I’d be tempted to examine the investment trusts in this sector. Investment Trusts are pretty good at investing in companies such as these and have the benefit of trading at sizeable discounts to NAV at the moment – value on value.
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