Tuesday, July 7, 2009

Someone Is Bullish on Health Care -- Too Bad It's Not In the US

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 He said recent visits to the country have underscored how outdated some hospitals there are.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.

1 comment:

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