The Sector Beating Berkshire

Is there a better investment than Berkshire Hathaway? [Wealthy Retirement]( SPONSORED [30-Day Countdown: Start Collecting Extra Cash Every Month!]( [30-Day Countdown]( Attention... please mark your calendar! Next month could be the biggest moneymaking opportunity you see all year. That's because you could [start collecting multiple cash payouts every 30 days]( - or less. All it takes to get going is a starting stake... a computer... an internet connection... and a couple minutes of your time. To find out how you can get started today, [click here now](. Editor's Note: As Contributing Analyst Jody Chudley explains below, the biotech sector has doubled the rest of the S&P 500 over a nearly 20-year time span. But to reap those gains, you first need to understand the sector, know the telltale signs of a winning pick and be able to track the progress of pharmaceutical trials. Fortunately, Chief Income Strategist Marc Lichtenfeld has devised a fun and easy method to get you in the know... On October 27 at 1 p.m., join quizmaster Marc as he hosts the [Oxford Investing Games]( - a FREE virtual trivia game show in which everybody comes out ahead! Answer questions about biotech as you learn the ropes of the sector and earn chances at prizes, like a FREE LIFETIME subscription to Marc's biotech VIP Trading Research Service, [Lightning Trend Trader]( - a $10,000 value! [Click here to learn about biotech - all while having fun!]( - Kyle Wehrle, Assistant Managing Editor [MARKET TRENDS]( This Sector Is Outperforming Berkshire Hathaway Jody Chudley, Contributing Analyst, The Oxford Club [Jody Chudley] Sometimes, it's good to see your heroes beaten. Hear me out... It's better than it sounds... Last week, I introduced my two daughters to my personal hero... A 91-year-old gentleman who embodies so many of the character traits that I strive to emulate, like honesty, integrity and kindness - the kind of qualities I'm instilling in my kids. I didn't introduce them to this man in person. Instead, we watched an hour-and-a-half-long documentary about him on HBO. My hero is Warren Buffett. I admire almost everything about him. In spite of my reverence, it isn't easy to convince both a 12- and 14-year-old to give up that much of their free time to watch a documentary about a 90-year-old investor. But I managed to do it, and I'm glad I did. My kids were captivated by the story of this happy old man. They agreed that Buffett's character is one to emulate. And they couldn't believe that he plans to donate most of his remaining $100 billion fortune to charity by the end of his life. Mission accomplished. But Even Buffett Can't Match Up Against This Sector... As an investor, I've long considered Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) as my opportunity cost. For each of my investment ideas, I ask myself, "Is this really a better investment than Berkshire Hathaway?" I do it because Berkshire's massive balance sheet and Buffett's capital allocation, together, equate to an investment that carries minimal risk but offers significant reward over time. Berkshire is diversified across many industries, has a huge amount of cash and is run by a risk-averse CEO. It is extremely low-risk for one stock. But... it is still just one company. As investors, we need much more diversification than that. And unfortunately, the more we diversify to reduce risk, the lower our returns are likely to be in most sectors. But with each passing year, I'm learning that one corner of the market is unlike most sectors... Biotech is different. SPONSORED [@#$%!]( [Angry Businesswoman]( You missed these one-day gains... 51% on Canopy Growth... 73% on Dick's Sporting Goods... 95% on Conn's... 121% on Abercrombie & Fitch... 113% on Ciena... 108% on UPS... 133% on Kellogg... 136% on Ambarella... 116% on Pinterest... 130% on Twitter... 178% on Yum Brands... and 188% on FedEx! [Click here to stop @#$%ing around and get what's yours.]( Historical data shows that in biotech, you can build a very diversified portfolio and still outperform by a significant margin. I'll use the iShares Biotechnology ETF (Nasdaq: IBB) as an example. This exchange-traded fund (ETF) is massively diversified, holding 268 different stocks tied to the biotech sector. Despite that wide diversification, this ETF has had a stunning long-term performance. Over the past couple of decades, the biotech sector has doubled the performance of the S&P 500. [Biotech's Smashing Outperformance]( And it hurts me a little bit to say it... But the biotech sector has soundly thrashed the performance of Buffett's Berkshire Hathaway over the past 20 or so years as well. [Even Buffett Hasn't Come Close to Biotech]( As investors, we should always look for opportunities to invest with the wind at our backs. The stocks in the biotech sector have now shown over the long term to have one of the biggest tailwinds in the market. It is no mystery why... When these biotech companies succeed, they are massive winners. They don't all work out, but the ones that do are so successful that they drive outperformance for the entire sector. All we have to do is look at a three-year chart of a company like Moderna Inc. (Nasdaq: MRNA) to appreciate how getting just one of these biotech success stories into your portfolio can make a big difference. [A $10,000 Investment in Moderna Has Become...]( When a portion of a portfolio that is allocated to biotech has sufficiently diversified picks, one of those picks can hit its mark and throw the portfolio's wealth generation into overdrive. Diversification is the keyword in that sentence. You can make a concentrated bet on Berkshire Hathaway. In biotech, you need to diversify. And while the historical charts for the biotech sector look great, the future for these companies should be even better. As our understanding of biology is rapidly evolving, so too is our repertoire of biotech tools. This, combined with the urgency of the COVID-19 pandemic, is leading to profound improvements in our ability to diagnose, treat and cure ailments. The big winners from this wave of scientific breakthroughs will be not only companies in the biotech sector but all of society... Just as all of society will benefit from Warren Buffett's $100 billion act of charity. Good investing, Jody [Leave a Comment]( MORE FROM WEALTHY RETIREMENT [Is This Dividend Heading for Choppy Waters?]( [Pollutive Oil Sands Producers Will Keep on Thriving]( [These Stocks Could Fund Your Retirement - and Leave Something Special to Your Heirs]( [Facebook]( [Facebook]( [Twitter]( [Twitter]( [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AIs%20there%20a%20better%20investment%20than%20Berkshire%20Hathaway?%0D%0A%0D [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AIs%20there%20a%20better%20investment%20than%20Berkshire%20Hathaway?%0D%0A%0D [Email Share]( [Push Alert]( SPONSORED [The "Secret Tech Companies" Delivering Big Profits]( [Cirrus Logic]( Cirrus Logic... Q Technology... Micron Technology... these are all little-known tech stocks that saw 10-bagger gains after getting into the Big Tech supply chains. It took as little as 18 months or as long as 12 years. And now, another $10 stock could join them. It just broke into the Tesla and Samsung supply chains. And Apple reportedly is collaborating with the company on a $330 million facility to add the company's tech to the iPad and iPhone. What is this special tech that the $10 stock developed? [See it in action right here.]( [The Oxford Club]( You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. 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