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The 7investing Podcast

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Jan 27, 2022 • 19min

7investing Team Podcast: Our Reckless Predictions for 2022

We’re only four weeks in, and 2022 is already proving to be an eventful year. Between the S&P 500 and the Nasdaq’s recent corrections, concerns about a war between Russia and Ukraine, and the Fed’s promises of an upcoming rate hike, the new year has brought more than a few interesting financial media headlines. While the upcoming Year of the Tiger is still a young cub, we figured now was the time to make a few reckless predictions. Our 7investing advisors gathered together to have some fun, and we came up with five “hey it could happen” prognostications that could have significant impacts for investors in 2022. Steve Symington believes a small & mid cap rally is inevitable, while Maxx Chatsko believes CRISPR and gene editing are prone to come back down to earth. Anirban Mahanti thinks Peloton (Nasdaq: PTON) might soon be acquired, and Dana Abramovitz believes Facebook/Meta Platforms (Nasdaq: FB) is destined to enter health care. And 7investing founder and CEO Simon Erickson believes this is the year that the US will finally put a ban on Payments for Order Flow. While we’re not guaranteeing a 1.000 success rate (these are “reckless”, after all!), we do enjoy thinking out loud about what innovation in the markets could mean for stock investors. If you’d like to join the fun and discuss any of our predictions in greater detail, please bring your thoughts to our newly-launched 7investing Community Forum. Publicly-traded companies mentioned in this interview include Crispr Therapeutics, Meta Platforms, Peloton, and Robinhood. 7investing’s advisors or its guests may have positions in the companies mentioned. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education:  https://www.7investing.com Join the 7investing Community Forum: https://discord.gg/6YvazDf9sw Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Jan 25, 2022 • 27min

7investing Explains: How are Medical Devices and Genetic Tests Regulated?

Given the rise of exciting new therapeutic modalities ranging from mRNA to gene editing, investors would be forgiven for overlooking opportunities in medical devices. They might be worth a closer look though. In this episode of the 7investing podcast, the team's health-care trio provide a high-level overview of the regulatory environment for medical devices, describe why and how genetic tests are regulated as medical devices, and provide three examples of companies in the space and how they fit within the regulatory landscape. Medical devices are regulated by the U.S. Food and Drug Administration (FDA) within three categories: Class I devices are the simplest and least likely to pose safety risks. Examples include bedpans or medical gauze. These require regulatory clearance. Class II devices are more complicated and require more data within their regulatory submissions to ensure the safety and effectiveness of the device. Examples include X-ray machines or knee braces. These require regulatory clearance. Class III devices are the most complicated and pose the greatest potential risk to patients, such as life-supporting, life-sustaining, or implantable devices. Examples include liquid biopsies, pacemakers, or implantable contact lenses. These require regulatory approval. Although Class I and Class II medical devices can be submitted through the 510(k) process and only need to show equivalence to a predicate ("existing") device, Class III medical devices must be submitted through the more rigorous premarket approval (PMA) process that often requires a clinical trial. Unlike a drug candidate that requires at least three separate clinical trials (phase 1, phase 2, and phase 3), a Class III medical device often only requires a single clinical trial. It seems odd, but genetic tests and liquid biopsies are also regulated as medical devices. These product candidates are categorized into one of the classes above, which typically impacts how and where they can be used. The three designations of genetic tests include: Research use only (RUO) products cannot be used as diagnostics and don't require a regulatory submission. RUOs can form the basis of a more advanced diagnostic product from the originator or its customers. These serve an important role, but generally have the smallest market opportunity. Laboratory developed tests (LDT) must be designed, manufactured, and processed by a single CLIA-certified laboratory. These tend to be Class II medical devices and require a 510(k) filing. LDTs are often used with centralized business models, where patient samples are shipped to a centralized facility. Examples include genetic screening tests. These have the largest volume potential, but low to moderate pricing and insurance coverage. These have moderate to large market opportunities. In vitro diagnostics (IVD) are more robust tests and can be shipped to the point of care, which means placed in the hands of doctors, oncologists, and medical facilities. Because these are not self-contained within CLIA-certified labs, they're often classified as Class III medical devices and require a PMA filing and clinical trial. IVDs are often used with distributed business models, where patient samples are processed at the point of care. Examples include liquid biopsies. These have both large volume and high price potential, which results in the largest market opportunities by monetary value. Finally, the podcast concludes with three different examples of medical device companies: 7investing Lead Advisor Dana Abramovitz discusses Inviate (NYSE: NVTA). 7investing Lead Advisor Maxx Chatsko discusses Nano-X Imaging (NASDAQ: NNOX). 7investing Lead Advisor Simon Erickson discusses STAAR Surgical (NASDAQ: STAA)
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Jan 20, 2022 • 26min

Welcome Luke Hallard to 7investing!

We are very excited to welcome Luke Hallard as our newest 7investing lead advisor! Luke has a degree in Computer Science from the University of Wales, Aberystwyth. His first role was as a software engineer in the team developing the air-traffic control system that still manages all UK and transatlantic airspace. He transitioned from technology to finance in 1996, joining HSBC James Capel Investment Bank, and in 2021 retired from a 25-year career as a Programme Director leading organizational change. Luke’s knowledge of conduct, financial crime risk, data privacy, sanctions screening, anti-money laundering, and payments transparency is happily fading into a hazy memory of bureaucracy and complexity. Luke primarily invests in technology and innovation, with a current bias towards health-tech and companies enabling the 'work from anywhere' economy. By his own admission, he's not a deep domain expert in any area, and instead invests across many sectors, feeling that this offers greater portfolio agility if market forces don't play out in the way he anticipates. Luke primarily invests in US equities, but he also has a handful of angel investments, with two successful exits to date. Although Luke’s portfolio spans many industries, a key factor his personal investments have in common is that they all seek to make the world a better, less complex place. Luke invests with his head, but his heart occasionally exercises the power of veto. Luke and Simon first met when Simon guested on the Telescope Investing podcast, hosted by Luke and his co-founder Albert. Simon immediately recognized the close affinity between 7investing and the long-term growth investing strategy that Luke has successfully employed through the last eighteen years, delivering a market-beating compound growth rate in his personal portfolio of over 26% annually. Luke holds trustee and grant panel roles with multiple UK charities in the social welfare sector. He’s married to Katrina, and they live in London with their Siberian cat, Sushi. Luke has a passion for health and physical fitness. He’s completed the London Marathon, and is currently training for a 4x4x48 challenge, running four miles every four hours for 48 hours. He dedicates his winters to skiing and snowboarding, and in a final bid to successfully land a back-flip on a board he recently attended trampoline classes. Luke is a motorcycling enthusiast and regularly tours Europe by bike, although his favourite stretches of roads are in Japan. He’s embarrassingly slow on the racetrack despite living fifteen minutes from an internationally renowned motor racing circuit, and spent his younger years volunteering as an observer with the Institute of Advanced Motorcyclists. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education:  https://www.7investing.com Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Jan 18, 2022 • 1h 5min

Why Have Growth Stocks Plummeted? An Interview with Tobias Carlisle

In 2021, many growth investors suffered severe losses even while the S&P 500 index advanced 27%. A recent Bloomberg article pointed out that almost 40% of the stocks in the Nasdaq Composite Index were down 50% or more from their all-time highs. It continued, "At no other point since the bursting of the dot-com bubble have so many companies fallen like this while the index itself was so close to a peak." Are tech stocks down big because the Federal Reserve expects to raise interest rates several times this year? Did their valuations get too stretched in their post-COVID runup? Tobias Carlisle joined 7investing Lead Advisor Matthew Cochrane this week to help us walk through these challenging questions. Carlisle, the founder and managing director of Acquirers Funds, believes it is important to weigh the company's quality with the valuation investors must pay to buy shares. In an exclusive interview with 7investing, Tobias describes his investment philosophy as "quality at an unreasonable price."  He states that he looks for three primary qualities before investing in a company: 1) a discount to a conservative valuation; 2) a strong, liquid balance sheet; and 3) a robust business capable of generating free cash flows. 7investing Lead Advisor Matthew Cochrane and Tobias Carlisle walk through the definitions of value and growth stocks. Before the conclusion of the interview, they discuss a stock they both like, Lockheed Martin (NYSE:LMT), and some of the qualitative advantages it enjoys as a prime defense contractor. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education:  https://www.7investing.com Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Jan 13, 2022 • 24min

5 Big Reveals from the 2022 JP Morgan Healthcare Conference

There aren’t many single events that bring together a Who’s Who list of the leading private and public companies in biotech and synthetic biology. The JP Morgan Healthcare Conference is one of the rare exceptions. The annual event, held every January, is one of the biggest stages for companies to reveal innovative new products in development, announce acquisitions, and form landscape-shifting collaborations. Investors were left wanting more after the 2021 meeting, which was relatively subdued due to the coronavirus pandemic. The first few days of the 2022 event seemed to live up to historical expectations, with a handful of companies making splashy announcements so far. In this episode of the podcast, 7investing Lead Advisors Simon Erickson and Maxx Chatsko sit down to provide quick takeaways on some of the biggest reveals from the beginning of the 2022 JP Morgan Healthcare Conference. These include: The unveiling of a long-read DNA sequencing technology from Illumina (NASDAQ: ILMN) and an enzymatic DNA synthesis technology from Twist Bioscience (NASDAQ: TWST). Molecular testing leader Exact Sciences (NASDAQ: EXAS) used the stage to reveal that it comfortably beat full-year 2021 guidance and jump into hereditary cancer testing. Meanwhile, Beam Therapeutics (NASDAQ: BEAM) announced a research collaboration with Pfizer (NYSE: PFE) that had an unusual structure. Simon and Maxx also share their thoughts on the slow pace of merger and acquisitions (M&A) in drug development in the last two years — and why record cash balances and a constant need for innovation at the largest companies suggest that could change in 2022. Publicly-traded companies mentioned or alluded to in this podcast include Beam Therapeutics, CRISPR Therapeutics, Eli Lilly, Exact Sciences, Illumina, Intellia Therapeutics, Novo Nordisk, Pacific Biosciences, and Twist Bioscience. 7investing’s advisors may own positions in the companies that are mentioned. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education:  https://www.7investing.com Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Jan 11, 2022 • 48min

Improving Your Decision-Making Process with Krzysztof Piekarski

It’s certainly been an interesting month for the stock market! The trading world has set its obsessive eyes upon GameStop, with headlines frantically reporting the stock’s every move and social media becoming chock-full of posts boasting about weekly gains. There’s an uncomfortable amount of chatter taking place right now about how “easy” it is to be an investor. But investing shouldn’t be thought of as buying short-term lottery tickets. Instead, it takes a great deal of thorough and analytical research. And it also demands a finely-tuned decision-making process. It’s not enough to just do the analytical legwork to find great stocks. We also must have enough conviction in ourselves, to buy or sell exactly when the opportunity presents itself. In this behavioral economics realm, we recently sought the advice of an expert. Krzysztof Piekarski is a Professor of Rhetoric at the University of Texas at Austin. He’s been an investor for more than twenty years, and he’s extremely in-tune with how human beings make decisions (and even wrote a PhD dissertation on the topic). Krzysztof also has the distinction of being the only guest writer we’ve ever featured on 7investing. He has written two incredible articles for our site during the past year: Why ‘Don’t Panic’ is Not Good Advice and The Importance of Patience. In this exclusive interview, Krzysztof offers a framework for investors to dig deeper into their internal decision-making process. He describes how external influences can flip on our behavioral biases, but that by looking inward we can avoid dangerous traps such as hubris or FOMO. A focus on humility and patience can lead investors to much better long-term returns. Krzysztof explores the topics of “integrity” and “character” in investing, and reveals his own personal approach to buying stocks. Simon and Krzys compare investing with Texas Hold ‘Em poker, and describe how probabilities and incomplete information are things that people must become comfortable with. Krzystof also shares his thoughts about the current market environment, explains how Apple and Tesla became two of his most successful investments, and offers some important words of advice for newer investors. Publicly-traded companies mentioned in this interview include Apple, GameStop, and Tesla. 7investing’s advisors or its guests may have positions in the companies mentioned.  This podcast originally was published on February 9th, 2021 and republished on January 11th, 2022. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education:  https://www.7investing.com Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Jan 6, 2022 • 50min

Buy Castlight Health: A 7investing Deep Dive

January 6, 2022: Our 7investing team has a policy that we don’t publicly reveal our official recommendations. Our members subscribe to our service for our research, and we always consider our recommendation reports as proprietary IP. We reserve these reports, as well as our team’s discussion about the stocks during the month when we recommend them, for our paying subscribers. However, a unique opportunity recently presented itself, which allows us to once again publicly share our research in a way that doesn’t compromise our policy. Castlight Health (NYSE: CSLT) was the official recommendation of 7investing lead advisor Dana Abramovitz in November 2021. On January 5, 2022, Vera Whole Health announced it had made an official all-cash offer to acquire Castlight Health for $2.05 per share. We believe this is a win-win for Castlight as a business and also for its shareholders. We also expect the deal will close and do not expect there to be another offer. As such, we are officially selling our shares and closing the Castlight position from our 7investing scorecard. We also have decided to make our initial November 2021 recommendation report publicly available. This is a great opportunity for us to showcase one of our actual recommendation reports and also give a sneak-peek into our investing process. As this now-public research demonstrates, each team member wields a deep understanding of their respective domains — we’re not just handing members a list of tickers. We thoroughly and objectively evaluate opportunities and challenges to encourage members to adopt a long-term mindset. The team at 7investing comprises experts in biotechnology, health care, synthetic biology, artificial intelligence, fintech, disruptive innovation, space technologies, and more. If you’re interested in gaining access to seven of these recommendations each month, please subscribe today! We hope you enjoy our actual November 2021 Deep Dive team discussion. The transcript follows, and the video pitch is displayed above. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education:  https://www.7investing.com Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Jan 4, 2022 • 45min

Navigating Market Volatility with ChitChatMoney's Ryan Henderson and Brett Schafer

2021 was an interesting year for investors. Overall, the S&P 500 composite index increased 26.89% during the year. But digging in deeper, those top-line return numbers are perhaps a bit deceiving. More than 20% of the S&P 50's market-cap weighted index is consolidated in its five largest constituents. Those would be Apple (Nasdaq: AAPL), Amazon (Nasdaq: AMZN), Alphabet (Nasdaq: GOOGL), Amazon (Nasdaq: AMZN), and Tesla (Nasdaq: TSLA), in that respective order. Several of those stocks had an incredible year, which caused the overall performance of the overall index to similarly look incredible. But if you take out just a few of those high-flying names -- such as Alphabet's 65% gain or Tesla's 50% gain -- the total return suddenly becomes significantly less impressive. As such, the recent volatility of the broader market leaves investors in a conundrum. With the looming threats of rising interest rates or inflation, should we continue to flock to the relative safety of the market's largest companies? Or conversely, is the recent market selloff actually presenting an opportunity to buy into several smaller companies at a relative bargain? To help us answer those questions, we've brought in two of our favorite investors. Ryan Henderson and Brett Schafer together host the investing podcast Chit Chat Money and are also the general partners of Arch Capital. We thought the recent volatility presented an excellent opportunity to hear their perspectives on the status quo of the stock market. In this exclusive interview, Ryan and Brett spoke with 7investing CEO Simon Erickson and 7investing lead advisor Steve Symington about a variety of topics. They first discussed how investors should think about volatility and the process they follow for their investing methodology. They also describe three of Arch Capital's largest holdings -- Sprout's Farmers Market, Spotify, and Nelnet -- and provide a thorough recap of why they like each of these positions. And to have a little fun in the outro, Ryan, Brett, Simon, and Steve each share one stock that was on their Christmas List for 2021. Publicly-traded companies mentioned in this interview include Boston Omaha, Callaway, Costco, Latch, MongoDB, Nelnet, Rocket Lab, Spotify, Sprout's Farmers Market, and Walmart. 7investing's advisors or its guests may have positions in the companies mentioned. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education:  https://www.7investing.com Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Dec 29, 2021 • 41min

Buy Dicerna Pharmaceuticals: A 7investing Deep Dive

Today marks an extremely exciting episode of the 7investing Podcast!   While we don't publicly reveal our recommendations, a 3 time recommendation, Dicerna Pharmaceuticals $DRNA, was recently acquired.  We're making the most recent report & video pitch publicly available in its entirety to give you a peek at our team's research process. Dicerna $DRNA was rec'd tomembers 3 times: Nov 2020 ($21.15), Apr 2021 ($25.76), and Oct 2021 ($20.26).  Today it was officially acquired by Novo Nordisk for $38.25/share.  Watch Maxx Chatsko make his case to the team for the Oct 2021 rec: https://7investing.com/articles/dicerna-pharmaceuticals-deep-dive-october-2021-2/ You can also read the entire 25-page research report from Oct 2021. This is our actual report: https://7investing.com/company-update/buy-dicerna-pharmaceuticals-from-october-2021/  Members receive 7 reports each month of our best stock market ideas, spread across every industry.  Today's closing of the acquisition means there's no more gains available for investors.  We thought that made for a perfect opportunity to share our previous report & Deep Dive team call, and showcase what 7investing's official research really looks like.  http://7investing.com/research If you would like to see all *seven* of our research reports and Deep Dives every month, sign up for 7investing today!  Using promo code "holiday" at checkout will even save you $100 off your annual order for as long as your membership is active. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education:  https://www.7investing.com Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Dec 16, 2021 • 39min

Investing in Emerging Markets with Perth Tolle

Investors hear a lot about emerging markets. The term is used to describe countries with a greater growth trajectory than established economies such as the United States. Emerging markets collectively harbor an estimated 85% of the global population and half of global gross domestic product (GDP), but companies in such markets account for less than 15% of the value of global stock exchanges. It seems like an obvious opportunity, but investors might have a lot of questions. Developing countries don't always have favorable demographics, rights to property, laws protecting businesses, or other freedoms investors take for granted when it comes to American companies. How do investors sift through a noisy internet to determine what emerging markets are worth having exposure to? Perth Tolle has developed a framework for doing exactly that. She manages the Freedom 100 Emerging Markets ETF (the ticker is $FRDM) that only invests in companies from developing countries that rank highly on an objective, independent measure of economic and personal freedoms. Countries are ranked relative to peers, not on their potential for improvement, and investments are weighted based on the country rankings. For example, Taiwan and Chile are included, but China and Russia are not. The exclusion of Chinese companies is noteworthy considering many emerging market funds are heavily weighted to the country. However, as 7investing Lead Advisor Matthew Cochrane points out, investing in Chinese stocks has led to more disappointment than wealth-building returns in recent decades. From 1994 to present, China's GDP has grown 2,750% while the average value of China's stock market has grown just 98%. How is that possible? There's a strong argument to be made that the inability of Chinese stock exchanges to capture economic growth is directly related to a lack of economic and personal freedoms. Unfortunately, the country has been recently backsliding in the relative rankings relied on by Perth and the Freedom 100 Emerging Markets ETF. If you've ever been curious about responsibly investing in emerging markets but didn't know where to start, then this podcast is for you. Publicly-traded companies mentioned or alluded to in this podcast include Alphabet, Apple, Didi, Meta Platforms (Facebook), Microsoft, Taiwan Semiconductor Manufacturing Company, and Tesla. 7investing Lead Advisor Matt Cochrane owns shares in Meta Platforms, Microsoft, and Taiwan Semiconductor Manufacturing Company. 7investing Lead Advisor Maxx Chatsko has no position in any companies mentioned on this podcast. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education:  https://www.7investing.com Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing

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