Are Biotech stocks one to look out for as Biology is the dominant science of this Century? Read on as I make the argument why it is. (image credit: dreamtime)
For those that don't know Kevlar is what we use to make our bullet proof vests, so in theory these spiders make webs which are 10 times better at stopping a bullet! Amazing. It goes to show how nature may be just as good or even better at producing materials/things we need.
Before we go further into why BIOLOGY is the field of science the next 100 years, let's look at history.
Astronomy has played its role in helping mankind explore the World by helping them navigate the seas and establish new trade routes, followed by Chemistry and Physics paving the way for the Industrial Revolution. Physics gave us flight, refrigeration, electronics..even the Internet!
So, what is the dominant science for this century? Easy, Biology. It all started with the mapping of the human genome in 2003 which has opened the world to new possibilities.
Physicist and Author Freeman Dyson : "Two branches of biology in particular, genetics and neurophysiology, presents us with an abundance of fundamental unsolved problems that new technological tools will enable us to attack."
So, that's where the next big growth market is - Imagine a new treatment for cancer where the healthy cells will actually attack the cancer cells or stemcells which help people who have lost limbs/organs by growing them back!
Well, that's all I can lead you a top-down investment idea. I have to admit I am not a biologist or close.. but I have some links as to fool.com (only the greatest investing website out there IMHO!) with someone who has some idea what he is doing!
(Do note tho' that this may be a high growth industry but these stocks are equally risky and/or volatile because being approved for commercial use, safety and its actual economic viability are obstackes. I plan to look at SGX biotech stocks when I have the time or does anyone have any tips?)
Read on: http://www.fool.com/investing/small-cap/2011/02/17/an-inside-look-at-biotech-investing.aspx for part one
And you can visit his profile to see his performance and why he picks certain stocks and comments to follow - http://caps.fool.com/player/zzlangerhans.aspx
He is described as : "an emergency room physician and Harvard magna cum laude in biochemistry who has been a Howard Hughes research fellow in transgenic mouse models and an NRSA fellow in xenotransplantation. He currently maintains a high rating on CAPS while focusing exclusively on biotechnology companies."
As such, you can be assured at least its within HIS circle of competency! One to watch, I say! His blog is here.
Full Disclosure: Yes, I am a faithful reader of fool.com and also a member of its premium SA service but this is an unsolicited post.