The focus is constantly on selection of those biotech companies that could become future leaders of the pharmaceutical industry. Investment policy is concentrated on stock picking and financial analysis in order to create the best investment portfolio possible.
Investors with J. Lamarck need three basic investment principles:
1) Knowledge of the market.
We all agree that biotechnology is one of the most promising investment opportunities, but if you want to invest in this sector you need profound knowledge of the companies, their products and their management. Since 1995 analysts of J. Lamarck have build up great expertise in this market and will guide you away from making wrong investment decisions in seemingly promising situations towards investments with solid growth prospective.
2) Buy and hold! Good advice, but who listens?
Millions of people follow market-timing systems intended to get them into the market when stock prices are going up and out again before stocks go down. Sometimes people invent their own systems. More often, they follow a newsletter writer or investment guru. These gurus publish their best predictions to ”prove” how right they have been. You never hear about the forecasts that were wrong. Dow Jones, AMEX-NASDAQ or S&P500 too low or too high? It just doesn’t matter. The rule for the successful investor is to make a strategic investment decision and hold on to it. We are not saying you cannot make adjustments within your portfolio if a particular stock had a nice run up, but try not to time the market in order to get in or out. Piles of historical data show that most market-timers cannot beat a strategy of buy and hold. Over the long run, you are better off making a sound strategic decision and stick with it for ten or twenty years.
3) Stock picking
Being selective is very important in setting up an investment portfolio. Our analyst select companies with strong fundamentals that meet our company investment criteria:
i. We look for fast-growing biotech companies with a broad technology platform, that should be able to become market leader in their specific market.
ii. We are attracted by a strong and experienced management team that is able to guarantee a company culture of trust and mutual respect.
iii. We will only invest in regular stock markets; our clients can control their portfolio, at any time, checking the quotes on the internet or in the newspapers.
iv. The companies should have a number of corporate alliances/partners and excellent contacts with the academic world in order to guarantee scientific talent to the company.
The directors believe that this complete portfolio approach will lead to significant less risk and more upside potential for our investors.