Invest in Health Care

by | Sep 13, 2002 | Archives

Recent messages have reviewed global equities are in a 15 year downward cycle and that the best investments will be in technologies and businesses that will form the next economic wave.

So where do we invest next? One area is in health care. Good health and high energy are becoming more important than ever before! The health care revolution is going to be huge!

In fact economist and author, Paul Zane Pilzer, in his latest best selling book “The Wellness Revolution“, reckons this will be bigger even than social shifting technologies of the past two centuries such as the railroad, automobile, telephone, television, airplane, personal computer and internet). He points out the huge health problem in America and cites why the wellness industry will reach one billion consumers: the population of Japan, the U.S. and Western Europe.

Reading this book shows that there are four main attributes that an industry must have to become a universal social changing industry. These attributes are affordability, legs, continual consumption and time saving qualities.

Technology must be able to create affordability and get the price low enough so everyone can have the product. For example my first Data General computer was the size of a refrigerator, had two disks the size of pizzas, a processing capacity of 64K and cost $75,000. Today computers with megabytes of processing and gigabytes of hard drive are around for a few thousand bucks. If the price cannot fall, then a financing industry must emerge to make the product buyable (such as with cars and single family homes).

A product has legs when its benefits are so great that consumers immediately want it once they see others enjoying its benefits.

Products with continual consumption create other business when they are sold, Cars create gas stations and auto repair. Faxes, sell toners and ribbons. Computers create programming and the Internet, T.V. an entire advertising industry, etc.

Finally every great social economic wave saved time-from the railway, to the car, airplane, phone, T.V. to the computer.

Health care fits into everyone of these categories. You can see how the industry is just getting ready to boom as its prices begin to drop. Health food used to be really expensive and only available at health food stores. Now you can buy a broad range of vitamins, minerals, food supplements, organic meat, milk and vegetables and soy products at the super market.

As for legs, I can give the food supplements BIRM – see and Beyond Chelation – see as examples. With no marketing whatsoever our sales have grown and grown strictly through reorders and word of mouth. Orders come in again and again with notes that read something like this, “My friend is taking your food supplement and says they feel so good and they look so much better”. Everyone wants to feel and look better!

Third, feeling good creates an upward spiral. If a person loses weight and feels good they'll want to exercise or vice versa, if they start to exercise they'll soon want supplements to lose weight and increase performance. Every sale leads to another.

Finally nothing takes up our time like feeling bad. Low energy saps our productivity. Missed work and continual visits to the doctor ruin our ability to get things done. Nothing creates better productivity than feeling good, having high energy and strength and living a long time. All these add time in our lives.

The industry is growing in two sectors, the natural and scientific. In the scientific field some of the fast growing sectors are cosmetic plastic surgery, cosmetic dermatology (such as botox) voluntary eye surgery, (such as lasik, etc.), genetic engineering (sex selection and fertility enhancement), cosmetic and reconstructive dentistry, and voluntary pharmaceuticals (Viagra, Rogaine) etc.

The natural industry (which is the place Merri and I fit) includes health care and nutritional education, food supplements, vitamins and minerals, preventative medicine, Wellness health insurance, fitness clubs, trainers, coaches, fitness equipment, health foods, health food restaurants and weight loss products.

Often the proponents of these two sectors are at odds (we of course come down strongly on the natural side), but the reality is that each sector is huge and growing and already represents 200 billion a year in sales (half the sale of automobiles).

Merri's and my business are a testimony to this fact. Feeling this trend a decade ago we expanded our focus from just how to profit from international investing to global health secrets. Today our health products, courses and tours outsell our investments products and services! We have learned many ways and excellent products through the care of our own health on strenuous international schedules.

Recently a message at this site showed ten of the best performing shares over the past year. Not surprisingly three are in the health care field.

  • United Health Group Shares up 202%
  • Reebok Shares up 202%
  • St Jude Medical Shares up 174%

So as you look for equity investments that will have real growth in the years ahead, look at companies that have shifted into the health care industry. When you think wealth, just shift your perspective a bit and think health!

Until next message, good global investing!