Outside the Box

Want a New Cardiovascular System?

John Mauldin

March 1, 2011

This week’s Outside the Box is again a little unusual. Some of you will think, “There goes Mauldin again, dreaming of a brave new world of biotech.” Except this time the brave new world is here. My friend Pat Cox of Breakthrough Technology Alert has written a piece for me on what he and I think is potentially one of the most important scientific breakthroughs of the last few decades. Normally I don’t mention specific companies, but in this case we can’t talk about the breakthrough without mentioning the company. Disclosure: I own a small number of shares I bought over a year ago. This is one of a number of companies I am buying as part of my biotech holdings for the very long term. This is not investment advice and you should not replicate my holdings as each individual situation is very different. Always consult your investment professional and read all disclosures below.

Second, Pat gave what I thought was one of the better speeches I have heard in years last summer in Vancouver, and it is still relevant today. It is also one of the best and funniest PowerPoint presentations I have even seen. I was in awe with the creativity. It is about Schumpeter, creative destruction, and why the future is going to be full of dramatic changes. I really urge you to take the 35 minutes or so and listen to the speech and watch the PowerPoint. This is something that will really give you an education. Here's the link. It is on my website. If you are not a member, you will have to enter your email address.

Now, I know the sales promotion is over the top, typical of investment letters, and not my style at all; it is just what investment newsletter publishers do. But that does not take away from my respect for Pat and the quality of his work. He is one of my real “go to” guys for biotech and all new technology.

As part of the agreement with Pat’s publisher to allow me to use this piece, I offer this link to a way to subscribe to his letter. If you want to subscribe to Pat’s newsletter you can click on this link and get a significant discount (over 50%), for my readers only, available through March 15. I consider Pat one of the really must-read writers on new technology. His record speaks for itself. And the promo has an old date in it they couldn’t change – the real date is March 15.

Your hoping to live a lot longer analyst,

John Mauldin, Editor
Outside the Box

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Want a New Cardiovascular System?

Seven weeks ago, on January 3, the father of stem cell medicine made an announcement that will be remembered forever by historians. Dr. Michael West, CEO of BioTime Inc., launched a subsidiary, ReCyte Therapeutics, to commercialize endothelial stem cell therapies to reverse senescence in the cardiovascular and immune systems – the number one killer in the developed world. This newly launched enterprise will have a profound impact on our government…

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Mike Zink

March 5, 2011, 5:43 p.m.

Interesting article.  I choked a little on the following though.

“There is a simple solution, however: People work longer or invest more wisely to fund more of their own medical needs. Problem solved.”

If only it were so easy.  We live with uncertainty.  So one must work long enough and save enough based on a set of assumptions that may turn out to be incorrect or invalidated through no fault of the individual.

With investing it gets worse.  Stating “invest better or more wisely” is a massive oversimplification.  While any one individual can accomplish this it does not follow that this can be done on a collective basis.  Sufficient wealth creation (not just production) must exist along the way to support this.  Again, this wealth creation is not under the control of the investor who wishes to invest wisely.  It can be impacted by many factors : government actions and regulations, technological advances or lack thereof, misallocation of resources (people will get excited about things that hold promise but ultimately do not work out or that look like wealth creation but are not), or even outright destruction of wealth and wealth creation, e.g., war.

I consider that a very bad statement in an otherwise excellent article.

This video is the property of Agora Financial and does not necessarily reflect the views of the Mauldin Companies. At the time of this interview, John owned positions in some of these stocks. After this interview is released, John may purchase and expects to add to and may also sell his positions over time in these and other biotech stocks. John's decisions to purchase or sell his positions do not represent investment advice but rather the opinions and activity of an individual investor. Replicating John's transactions or purchasing any of these stocks may not be appropriate for you or for any other investor. Each investor's financial position, investment goals, risk tolerance, and tax situation are different. Always consult your investment professional. Past performance is not indicative of future results.

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