The world is at a tipping point – and unstoppable forces are changing the
face of investing.
The markets look very different than they did 50 years ago. Heck, even 10
years ago! Do you know where Apple (AAPL:NASDAQ) was trading on Jan. 2, 2003? Try
$14.80... It opened today at $528.50. That's more than 347% growth a year for
the past 10 years.
And over the next 10 years, we are going to see even more changes.
Whether you're retiring next year, or 20 years from now, everyone wants
the same thing: secure, sustainable wealth. We want consistent gains over a
long period of time, without a lot of risk.
That's not too much to ask for, right?
We want to build legacy wealth, generational prosperity and financial
security... I think one of the best ways to achieve that is with steady,
consistent gains from long-term, macro shifts in our global economic
environment.
I'm talking about shifts where money flows out of wealthy nations and into
emerging markets, industry shifts where a new technology is taking over old
processes, consumer shifts where an economy becomes a domestic consumer
instead of an exporter, supply and demand shifts where a formerly abundant commodity
is seeing strong demand and weak supply, and demographic shifts where growing
middle classes with disposable income are seeing huge numbers of new members.
These shifts are game-changers, and they can last for decades... That's a
big factor for sustainable wealth.
We're in the middle of a big shift right now.
Over the past two years, patents on 10 of the
best-selling brand name drugs have expired. That represents tens of billions
of dollars in revenue for companies like AstraZeneca, Merck and Pfizer. But
the next five years will see the patent expiration for drugs that currently
bring in about $255 billion each year in global sales.
This is a big shift in power from brand-name drug manufacturers to generic drugmakers.
One of my favorite companies in this arena is Watson Pharmaceuticals,
Inc. (WPI:NYSE). This has been a darling of a stock
for us in 2012.
This company has become the third-largest generic drugmaker in the world
through a massive acquisition. It's perfect timing, as big-name patents are
expiring in the branded drug industry.
Indeed, WPI is very well positioned to take advantage of this shift. The
company has thousands of generics and other drugs that will be able to enter
new markets in Eastern Europe and Asia because of the acquisition, and WPI is
going to save hundreds of millions of dollars a year.
That's great for long-term, steady growth. The company has 180 drugs in
development and 17 global research and development facilities all over the
world.
The next five years is going to show WPI as a big growth name.
WPI is expected to grow about 14% a year for the next five years, and it's
still challenging patents and getting its own generics to market.
But I want to talk to you about another name in the industry: Valeant
Pharmaceuticals International, Inc. (VRX:NYSE).
This company is kind of a hybrid pharmaceutical company. It focuses on
specialized pharmaceuticals and branded generics. With its hands in both
cookie jars, VRX has been able to weather the patent storm surprisingly well.
It's had consistent double-digit revenue growth since 2008. It does that
by competing in the marketplace with its own generics, by entering big growth
markets like Latin America, Eastern Europe and Asia, and by snapping up other
pharmaceutical and biotech companies.
And 2013 is expected to be a banner year. Here are the estimates:
For generics? Revenues are expected to grow by more than $100 million over
2012 figures. That's a pretty good number from a growing company working both
sides of the fence.
Over the past year, shares have climbed more than 28%, with prices nearly
doubling since early October 2011.
If you weren't able to get into WPI before its game-changing Actavis
acquisition, VRX is a good option for your portfolio.
Happy Investing,
Sara
The Silver Story of the Decade
The silver market is primed for an explosive rise in the next few months.
Experts are predicting huge gains by the end of the year.
Big bank practices kept the price of silver down, but we're about to see
massive silver gains.
Now's your opportunity to get in before the silver market explodes...
Learn all about it here...
Other Related Articles:
