Fox Business News' Matt Egan quotes investor Rob Lutts, bullish on the Chinese medical system.
Rob Lutts, president and chief investment officer at Salem, Mass.-based Cabot Money Management, said investing in China and health care is a safe bet.
With that in mind, Lutts has been snapping up shares of Shenzhen, China-based Mindray, which he believes could double its stock price in the not-too-distant future.
Lutts says Mindray is uniquely positioned to cash in on China’s growing demand for cheap medical devices to improve its dilapidated health-care system. He said recent visits to the country have underscored how outdated some hospitals there are.
“It’s like walking into a hospital 60 years ago in the United States,” said Lutts, who manages about $400 million.
Of course, the US could enjoy the same enormous amounts of health care improvement, if we wanted it. Yes, we are starting from a higher base than China, but so what? The appetite for better health care is limitless.
Why does China have to be the only place where double-digit growth rates occur? Other than India, maybe, or Malaysia.
And that's the point: Such growth is possible, but the politicians have to get out of the way.