Haim Toledano Investing in Biotechnology
Biotechnology is gaining more and more interest from investors because of the possibility of making good investment returns. However, the field of biotechnology is a high-risk one that should be approached with caution. Nevertheless, investment in biotechnology can reap very attractive returns.
Haim Toledano explains, One of the ways to invest in biotechnology is to invest in the stocks issued by biotechnology companies. There are several biotechnology companies to choose from, some more profitable and more promising than others
- Aging Population – According to reports published by the United Nations, by the year 2050, the ratio of adults aged 60 and over will double. This means that there will likely be a great surge in demand for the health products for the elderly that most biotechnology companies manufacture. Therefore, the stock prices for such companies are very likely to go up as we get closer to 2050. This means that right now is a great time to invest in the biotechnology sector.
- Great Historical Returns – In investment, there are no guarantees and past results are no indication of what will happen in the future. However, biotechnological stocks have tended to perform well in the past, giving excellent returns when compared to indices such as the S&P 500. All other things remaining equal, it is reasonable to expect these types of stocks to continue to perform well in the future. Nevertheless, there is some amount of risk involved since new products must receive FDA approval before launching, which can be a tough and lengthy process. And there are no guarantees that approval will be granted in the first place.
When all’s said and done, investment in biotechnology may prove to be a very worthwhile investment.