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Co-founder & CEO of AllenWargent property market & hedge fund advisory.
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Co-founder & CEO of AllenWargent property advisory, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.
4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.
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Sunday, 12 January 2014
Healthcare stocks which have outperformed
In my first book, Get a Financial Grip, I noted that if there is one sector of the market which is guaranteed to grow in size with Australia's growing and ageing population, it's that of healthcare.
Look at Ramsay Healthcare (RHC) go over the past 5 years, for example:
With a PE ratio of almost 30 which anticipates further growth it is now a very expensive stock.
It's also been a studious fightback by diversified group Sonic Healthcare (SHL) after some write-downs and a subsequent announcement of an earnings miss in 2009/2010.
SHL is also now trading at a higher PE ratio than it has been at 18.
In fact, a fair number of healthcare stocks smashed the market in 2013.
Check out Fisher Paykel & Paykel Healthcare (FPH) over the past couple of years, for example.
FPH is now trading at a PE ratio of 23.
These represented fairly high PE ratios. I'd be looking to be well diversified in the market, despite the market being anticipated to go up in 2014 by most forecasting houses.
Other healthcare and medical stocks which outperformed over the past 12 months included CSL and Resmed (RMD) which had a corker of a year.
Always take financial advice before making investments. I don't recommend specific stocks or financial products.