Billionaires Bet Big on Healthcare: Should You Follow Suit?
Investors should pay attention when billionaires start investing in the same trends. With millions of dollars at their disposal, they have the resources to access the most current information and may identify trends months before others.
One example of this is hedge fund manager George Soros, who recently purchased $325 million worth of Horizon Therapeutics PLC, a biotechnology company developing cures for rare and rheumatic diseases. While this may not seem significant on its own, several other prominent billionaires are also investing heavily in the healthcare industry.
Ray Dalio, founder of the largest hedge fund in the world, Bridgewater Associates, has made similar bets, with two of its largest holdings in Procter & Gamble Co. and Johnson & Johnson. Jeff Bezos’s Amazon.com Inc. has also become a healthcare powerhouse, with recent acquisitions and investments in the space. Entrepreneur and TV personality Mark Cuban has also launched a healthcare startup.
Investors looking to follow in the footsteps of these magnates have several options, including investing in the same holdings. Private startups, like Cuban’s Cost Plus Drugs Co., may be more difficult to access, but there are still opportunities to invest in healthcare startups.
While investing in healthcare may be a departure from the tech-focused investments that billionaires typically make, it demonstrates the potential benefits of diversifying across different sectors.
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