Epiphany Investing

Searching Out the Optimal Portfolio of “Revelation” Stocks

Adding Amgen to Secular Trends Portfolio

Posted on | September 16, 2008 Time: 2:27 pm |

I’ve kept a close eye on my watchlist in the past two days, hoping to find some deals in the many sectors I have yet to represent in the portfolio. Amgen this morning is breaking above its high for the year, and that kind of strong action on a day like this spells a new set of investors ready to be long this biotech/big pharma crossover play.

The thesis for Amgen’s inclusion centers on a pharma-type valuation for a company with a biotech pipepine and products. It has seen rough times in the past few years, but they saw similar headwinds in 2003-2004 and came roaring back - they seem to, for the most part, keep the innovation train on the rails.

I also contend that healthcare will end up being the best-performing sector of the year in the S&P, so I should get some allocation going soon to benefit from inflows as investors search out non-toxic industries.

Opening up a 4% position at $65.75 (610 shares)

Ryan Barnes

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Category: Investing Philosophy, Secular Trends Portfolio, Uncategorized
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