Fun Money in Health Stocks

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smartinvestor2020
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Joined: Sun Apr 12, 2020 11:35 am

Fun Money in Health Stocks

Post by smartinvestor2020 » Sun May 24, 2020 8:38 pm

What do you think of buying health stocks related to companies that are racing to find a covid-19 vaccine? I've always been a fan of holding VHT, but many individual stocks like MRNA have exploded higher on positive news. I understand that this is gambling so I would only play with a small percentage of my money.

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anon_investor
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Re: Fun Money in Health Stocks

Post by anon_investor » Sun May 24, 2020 9:15 pm

smartinvestor2020 wrote:
Sun May 24, 2020 8:38 pm
What do you think of buying health stocks related to companies that are racing to find a covid-19 vaccine? I've always been a fan of holding VHT, but many individual stocks like MRNA have exploded higher on positive news. I understand that this is gambling so I would only play with a small percentage of my money.
How much money are you using for your "funny money fund"? Personally, I do not have a massive amount for my "funny money fund", so I just went with ETFs. My picks were VGT (Vanguard Info Tech Sector Index) and VUG (Vanguard Growth Index), because I wanted to bet on tech, but I could not afford to buy many shares of individual stocks.

I am not sure how expensive shares of health stocks are or how much money you have for your "funny money fund", but if not a lot or shares are expensive go with a sector ETF.

annu
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Re: Fun Money in Health Stocks

Post by annu » Sun May 24, 2020 9:42 pm

Diseases and there possible cures are endless. Speculation on cancer cure, or heart disease or diabetes might be better option, as too much focus on covid.

I will personally stay away from vht, as due to tele medicine, things will change quite a bit.

Also for covid specifically, there will be risk of lawsuits, taking companies under.

I think it is not less risky than oil, look at most recent cash out from exec's of the firm that announced some positive results.

renegade06
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Re: Fun Money in Health Stocks

Post by renegade06 » Mon May 25, 2020 8:22 am

I like investing “fun money” in ARKG. The fund invests in innovative/next generation medical technology. The fund manager, Cathie Wood, is excellent.

am
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Joined: Sun Sep 30, 2007 9:55 am

Re: Fun Money in Health Stocks

Post by am » Mon May 25, 2020 9:22 am

smartinvestor2020 wrote:
Sun May 24, 2020 8:38 pm
What do you think of buying health stocks related to companies that are racing to find a covid-19 vaccine? I've always been a fan of holding VHT, but many individual stocks like MRNA have exploded higher on positive news. I understand that this is gambling so I would only play with a small percentage of my money.
Moderna has been losing money, has no products, and has a very early phase vaccine with some promising results. If their vaccine doesn’t come through, they will fall hard and fast. I bought some shares early and am sitting on a close to 100% gain. But the amount of money we are talking does not move the needle.

Not even sure why I am investing (gambling :)), maybe lockdown boredom. It’s one of the reasons why many here don’t recommend buying individual stocks. Don’t have to think about this stuff with index funds. Almost guaranteed to be ahead over the long run.

Robert20
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Re: Fun Money in Health Stocks

Post by Robert20 » Mon May 25, 2020 9:27 am

renegade06 wrote:
Mon May 25, 2020 8:22 am
I like investing “fun money” in ARKG. The fund invests in innovative/next generation medical technology. The fund manager, Cathie Wood, is excellent.

Out of 36 stocks they, top 10 contributes 60%.. Vow too risky ...

Instead why dont u invest in all 36 stocks in M1finance and avoid 0.75% ER?

occambogle
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Re: Fun Money in Health Stocks

Post by occambogle » Tue Jun 23, 2020 3:54 am

renegade06 wrote:
Mon May 25, 2020 8:22 am
I like investing “fun money” in ARKG. The fund invests in innovative/next generation medical technology. The fund manager, Cathie Wood, is excellent.
Was a pretty good day for ARKG and ARKK yesterday following news of Invitae's acquisition of ArcherDX (frankly I've never heard of either, and why to invest in ETFs not stocks).... NVTA surged 48% causing ARKG up 6.8% and ARKK up 4.8%.
https://www.fool.com/investing/2020/06/ ... rcher.aspx

BruinBones
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Re: Fun Money in Health Stocks

Post by BruinBones » Tue Jun 23, 2020 7:39 am

Health and medicine companies are such a broad array (from laboratory research - like vaccines, to soft goods, to animal science, to environmental, etc), it's hard to capitalized on the sector with just one holding.
It is certainly possible to get lucky and select a stock that will provide a breakthrough in medicine, such as needed for the coronavirus pandemic.
But keep in mind that other investors (professional and amateur) have already considered capitalizing on current events to find that needle in the haystack.
Moreover, even employees of companies working on a vaccine aren't stocking up on their own shares. They know that it's a race to the top, but sometimes what initially appears to work in pre-clinical trials just doesn't work when applied to real patients, and then it's back to the drawing board for the companies.
I've been in the medical field for almost 30 years, and I have divested from all of the medical stocks I accumulated over the years and now merely invest in total stock market.
Last edited by BruinBones on Tue Jun 23, 2020 3:55 pm, edited 2 times in total.

renegade06
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Re: Fun Money in Health Stocks

Post by renegade06 » Tue Jun 23, 2020 8:18 am

occambogle wrote:
Tue Jun 23, 2020 3:54 am
renegade06 wrote:
Mon May 25, 2020 8:22 am
I like investing “fun money” in ARKG. The fund invests in innovative/next generation medical technology. The fund manager, Cathie Wood, is excellent.
Was a pretty good day for ARKG and ARKK yesterday following news of Invitae's acquisition of ArcherDX (frankly I've never heard of either, and why to invest in ETFs not stocks).... NVTA surged 48% causing ARKG up 6.8% and ARKK up 4.8%.
https://www.fool.com/investing/2020/06/ ... rcher.aspx
Yes - great day for Invitae. I own some of that stock as well... wish I bought more! I prefer the ARKG and ARKK funds since they are an index of some of these innovative companies. I've also bought some ARKF, their FinTech fund, since I believe that cashless payments will increase in popularity.

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Picasso
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Re: Fun Money in Health Stocks

Post by Picasso » Tue Jun 23, 2020 8:23 am

annu wrote:
Sun May 24, 2020 9:42 pm

...as due to tele medicine, things will change quite a bit.
Agree completely - we are seeing an appx. 4000% increase in telehealth utilization since March. Will consumers stick with the technology post-Covid? Only time will tell.

CycloRista
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Re: Fun Money in Health Stocks

Post by CycloRista » Wed Jun 24, 2020 7:16 am

I've amassed a sizable chunk of "fun money" over many years. It has grown to somewhere in the vicinity of just under 10% of all liquid and investment assets at this point.

Health stocks are fickle and I've generally steered clear of them in my personal trading account (undoubtedly they are in the mix with my IRA, 401k and some other investment accounts). ARKG and others look interesting... might consider some of that to add "more fun" ;)

I tend to focus fun on tech stocks (which I know best from being in the industry for multiple decades), repeat (roller coaster) hype plays (exercise related companies, meat substitutes, payment platforms and rocket/space) plus an occasional IPO for short-term before the bubble bursts adventures. Some have done very well and others not so much though the amount keeps growing over time so I keep "playing".

I'd never "bet the farm" on it or sink more than ~8% of the "fun pool" into any individual stock (quite often more like 2% - 5%). It is quite fun and I like the challenge of seeing if I can continue beating the performance of all my other investments across the board.

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tennisplyr
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Re: Fun Money in Health Stocks

Post by tennisplyr » Wed Jun 24, 2020 7:42 am

I've put my fun money in tech funds over the past 20 years and am not disappointed...should have put more.
Those who move forward with a happy spirit will find that things always work out.

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