The Little Book of Big Profits from Small Stocks Summary - Chapter 6

Chapter 6: Getting the World Healthy and Wealthy

1.      This entire chapter is devoted to biotech and pharmaceutical sector. This sector is over-flowing with low-priced stocks.

2.      Smaller biotech companies can push the curve in new research in ways that larger and more established companies simply cannot. Rather than invest in unproven drugs and technologies the larger companies prefer to provide cash and assistance to the up and coming companies. In returns they can access potential breakthrough drugs with less overhead. It is a win for the company, for investors in the smaller company, and often for the patients.

3.      You can find potential winners through these methods:

a.       www.fda.gov

b.      Find ideas from top managers in the field by searching through the portfolios of the top mutual fund managers specializing in the medical and biotech fields – as they have to disclose their portfolio to the SEC.

c.       Talk to your own network of pharmacists, doctors and health care providers.

Chapter 7: Around the World under $10