As our population ages, there are more opportunities for companies involved in treating diseases. Companies in the biotech industry have a bright future. But, the author says that investing in biotech is risky. This is understandable because the firms in this industry rely heavily on innovation. New discoveries can make current products obsolete. Many investors lost money investing in these companies because they do not understand the industry and individual companies.
I liked how the author distinguished between high-tech and biotech companies. Successful high-tech companies develop valuable networks. For example, Microsoft has a network of software developers who tailor their programs to run on Windows. Biotech, on the other hand, is an industry of niches. The industry is complicated compared with other industries. However, the author did a good job making it more understandable to readers.
- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market