Good morning my dear readers,

India vs Pakistan tomorrow, how's the josh?

Action packed weekend, just the way it should be.

~~

Coming back to the main topic, Healthcare.

Personally, I am not too gung-ho on Pharmaceuticals as it's a very evolving industry.

By Healthcare, I am bullish on the Hospital industry.

~~

What I am about to say next is unfortunate and maybe mean, but it's true and as investors, we need to be objective..

1- Most people do not exercise, at all. (The average steps as per the Samsung Health app that people walk daily is just 5000 steps).

And these are the people who have downloaded the Samsung app or have some sort of tracking app.

I could bet that the real average daily steps of the population at large is lesser than 5000/day, unfortunately.

2- Bad eating habits, across the board.

Let's face it, we, as a world population, are ADDICTED to processed and junk food.

We also do not follow golden rules of good health like Intermittent Fasting.

(Intermittent Fasting is leaving a gap of 12-15 hours between dinner & breakfast).

3- Unrelenting pollution, in the air, water and in the food chain too.

A) All kinds of oil spills in the ocean, go unreported.

B) Everyday the ocean is filled with garbage and plastic which is eaten by the Fish which then is consumed by Humans.

C) And don't get me started on the Soil damage..

Chemicals and Pesticides, our food is not as pure as it should be, unfortunately.

D) The Air, is pretty much screwed too.

When I went to Abu Dhabi recently, they have built HUGEEEE indoor theme and adventure parks.

(While it was great as an experience, I immediately thought about the impact on our Ozone layer and the environment).

*Cannot only blame them, most countries are doing their bit to damage the planet, in their own unique way.

4- Lastly, STRESS.

It's everywhere, affecting everyone.

The older generations weren't so stressed out like how our population is currently.

There is chaos, everywhere, due to many complications globally affecting our lives.

~~

Conclusion:

Some body types don't get issues, but most do get affected by all of the above, and need medical intervention regularly.

*Earlier on, medical issues used to pop up in Humans in their 50's, but now it's the late 30's and early 40's for High Cholesterol, Diabetes, BP, Thyroid etc.

**Autoimmune diseases are on the rise, in a big way due to reasons mentioned above and many which I haven't written.

***Also, unfortunately since young couples are getting married late and conceiving in late 30s plus the issues mentioned above, the children born are also seeing alarmingly high levels of unfortunate issues.

~~~~~

As unfortunate and disturbing as this newsletter is, (I hated writing some of the contents), I fear the Hospital industry is likely to witness structural growth as more infrastructure will be needed in the years to come.

But as always, we cannot buy anything at expensive valuation, but investors should keep searching for investment opportunities with good managements at reasonable valuation in this space.

~~~~~~

Let's stop here for today. This is something we should think about.

Until next week, have a great weekend my friends..

My best,

Neil Bahal

Founder

Negen Capital

Disclaimer: This newsletter is for educational purposes only. While the newsletter discusses just general market insights and past case studies, still, the stock market is a very risky place which can result in losses.

Hence, always check with your financial advisor before acting on any contents of this newsletter.

No one has paid us to write this newsletter.

No representation or warranty, implied or statutory, is made as to the accuracy, completeness or fairness of the contents and opinion contained herein. The information can be no assurance that future results or events will be consistent with this information. Any decision or action taken by the recipient based on this information shall be solely and entirely at the risk of the recipient

Negen Capital is a SEBI registered PMS & AIF.