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Why Value Investor Guy Spier Avoids Investing In Healthcare

August 25, 2013

Guy Spier thinks that investing in the healthcare sector is a dangerous proposition.


He believes that at some point in every healthcare business there will arrive a situation where what is best for the healthcare business is not what is best for the patient. That is a moral dilemma.

It is Spier's choice to avoid having to be involved in a business where his best financial interests could be directly opposed to the health of another human.

Watch the video below for his thoughts on healthcare investing:

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Canadian Value

Rating: 3.5/5 (4 votes)


Dr. Paul Price
Dr. Paul Price premium member - 2 years ago
Plus... King Obama wants it to be illegal to make a profit delivering healthcare.
Lawonski - 2 years ago
Davita is viable in the US primarily because End stage renal disease is covered under Medicare. Essentially payment is assured although government can always regulate how much it pays.
Vgm - 2 years ago
I'd argue that any company which is helping to reduce healthcare costs is on relatively solid moral ground and will be looked upon favorably by the State, while (if properly run by able management) still capable of rewarding shareholders in a capitalist setting.

In the PBM space, ExpressScripts is arguably one such example. It's using its economies of scale, as well as increased efficiency, for cost reduction and also has the characteristics of an excellent long term investment. As a shareholder in ESRX, my conscience is quiet. ESRX is of direct benefit to society.

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