There’s much about the coronavirus fight that reminds me a lot of the fight against HIV-AIDS in the mid-1990s.
Back then I was an anchor and correspondent for PBS’ Nightly Business Report.
Then, as now, investors were betting on the biopharmaceutical sector to find a breakthrough as the annual number of AIDS deaths climbed above 40,000 in 1994.
But just like the HIV-AIDS fight, an investor’s dilemma is figuring out which firm will come up with a solution first.
By my count, there are over 20 companies racing to find a drug to combat COVID-19.
There are plenty of risks. In recent months, a few analysts are starting to warn about biopharmaceutical hype and the high valuations of some stocks.
Others caution that a successful coronavirus vaccine — funded in part by government money — could be considered “public property,” negating the winner’s valuable patents.
So, where do you put your money without taking extreme risks?
I’ve identified the stock that stands to benefit the most from coronavirus breakthroughs.
The Key to the Biopharmaceutical “Gold Rush”
I’m not ready to tell you the name of the stock in this article. But I just revealed it in a special new presentation.
The stock is already up 1,000% in the past few years, well above its coronavirus-panic low of a few months ago.
And I believe it’s destined to move sharply higher in the weeks and months ahead.
This Stock Is up More Than 1,000% Since 2009
(Source: TradingView.com)
The key is thinking beyond the current “gold rush” mentality. Instead, as the old saying goes: “Sell shovels.”
During the 1849 California Gold Rush, thousands of miners hoped to strike it rich and failed.
But some entrepreneurs supplied the clothing (Levi’s), did the financing (Wells Fargo) and sold the mining technology.
The Next Big Winner in the Coronavirus Crisis
Out of the dozens of companies trying to find a drug to treat COVID-19, most won’t see a payoff for one reason or another after the headlines subside.
So, you need to choose carefully. And in my view, one company stands above the rest when it comes to helping solve the COVID-19 crisis.
Thanks to its pharmaceutical research and development efforts, it has already been able to compound its profits at a 20%-plus pace for years on end.
Now, with the many billions flowing into the search for a COVID-19 cure and treatments, I expect the company’s profits to grow even further, pushing its stock price higher in the quarters ahead.
Make sure to watch my special new presentation for the next big winner in the COVID-19 crisis.
Best of Good Buys,
Editor, Total Wealth Insider