Choice Equities Capital Management, an investment management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. A net return of +29.2% was recorded by the fund for the Q1 of 2021, outperforming its Russell 2000 benchmark that delivered a +12.7% return, and the S&P 500 Index that had a +6.2% gain for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
The healthcare arena is just what the doctor ordered for 2023 as inflation continues and a recession looms. Healthcare is one of the most stable industries, and people will continue to spend money on medicine regardless of how the economy is doing.
Additionally, the World Health Organization (WHO) has estimated that the number of people who are aged 60 and older will almost double by 2050! The market will reach a staggering 426 million people.
What does this mean? It means more prescription drugs will keep older people healthy and active as their bodies wear down.
As baby boomers age, eye issues continue to boom. As more people spend their time on screens, eye issues continue to accelerate.
The growing eye industry is something investors can’t ignore much longer.
Of your five senses, eyesight ranks right at the top. And when eyes are affected by various conditions, people will do what they can to alleviate their symptoms and improve their eye condition.
Dry eye disease is one of the most common ocular eye conditions. It’s no surprise that the market has become extensive for dry eye drugs including brand names like Novartis’ Xiidra and Allergan’s Restasis.
These drugs are expensive too. Xiidra is not usually covered by Medicare insurance plans and there is no generic alternative available for Xiidra. Restasis is a prescription eye drop that increases tear production to relieve chronic dry eye and can also cost hundreds of dollars.
Not to mention that both drugs come with side effects, have inadequate efficacy, and a slow onset of action.
Healthcare research for the eyes is laying the groundwork for drug technology that has never been seen before and treatments and therapies are becoming more sophisticated with every passing year.
NEW Sample Issue of Insider Monkey’s Monthly Newsletter and 1 Free Stock Pick
Published on May 16, 2023 at by
Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. He launched his hedge fund in 1956 with $105,100 in seed capital. Back then they weren’t called hedge funds, they were called “partnerships”. Warren Buffett took 25% of all returns in excess of 6 percent.
For example S&P 500 Index returned 43.4% in 1958. If Warren Buffett’s hedge fund didn’t generate any outperformance (i.e. secretly invested like a closet index fund), Warren Buffett would have pocketed a quarter of the 37.4% excess return. That would have been 9.35% in hedge fund “fees”.
Actually Warren Buffett failed to beat the S&P 500 Index in 1958, returned only 40.9% and pocketed 8.7 percentage of it as “fees”. His investors didn’t mind that he underperformed the market in 1958 because he beat the market by a large margin in 1957. That year Buffett’s hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as “fees”. S&P 500 Index lost 10.8% in 1957, so Buffett’s investors actually thrilled to beat the market by 20.1 percentage points in 1957.
Between 1957 and 1966 Warren Buffett’s hedge fund returned 23.5% annually after deducting Warren Buffett’s 5.5 percentage point annual fees. S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. An investor who invested $10,000 in Warren Buffett’s hedge fund at the beginning of 1957 saw his capital turn into $103,000 before fees and $64,100 after fees (this means Warren Buffett made more than $36,000 in fees from this investor).
As you can guess, Warren Buffett’s #1 wealth building strategy is to generate high returns in the 20% to 30% range.
We see several investors trying to strike it rich in options market by risking their entire savings. You can get rich by returning 20% per year and compounding that for several years. Warren Buffett has been investing and compounding for at least 65 years.
So, how did Warren Buffett manage to generate high returns and beat the market?
In a free sample issue of our monthly newsletter we analyzed Warren Buffett’s stock picks covering the 1999-2017 period and identified the best performing stocks in Warren Buffett’s portfolio. This is basically a recipe to generate better returns than Warren Buffett is achieving himself.
You can enter your email below to get our FREE report. In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12-24 months. We initially share this idea in October 2018 and the stock already returned more than 150%. We still like this investment.
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