As you likely know if you follow me on Twitter, Facebook, or on this site, I’m excited about the technological and profit potential of CRISPR technology.
I’m currently invested in some of the most notable CRISPR names that currently trade publicly and I don’t plan on selling any time soon. I don’t feel this way about everything in my portfolio (some are much more short-term in nature), but these biotech names have the potential to not only change how we manage and treat diseases but also how we can feed millions of people worldwide.
What’s the potential of CRISPR?
Of course we all want to buy stocks in companies that will be instrumental in curing diseases such as cancer. Often the the success of these companies relies on a specific type of technology or therapies that targets a specific type of cancer or disease. CRISPR therapies aim to provide a framework for treating a host of different diseases and ailments. If successful, the use cases will be significant and globally impactful.
CRISPR is not only limited to healthcare use cases. It also have the potential to change the following areas in unthinkable ways:
- Pet breeding
- Food allergy modification
- DNA recording
- Decafination of coffee beans
- Improving the environmental impact of energy
- Improving the shelf life and nutritional content of foods
- Insect eradication
- Possible de-extinction of animals
As you can see, CRISPR has a broad range of use cases outside of the healthcare field. Once these technologies start to prove themselves, the tailwinds will be significant.
How to Invest in CRISPR?
That’s why it’s very important that you own a basket of these CRISPR stocks. No one can tell which companies will actually pull off therapies that will actually make it to the market. Gambling on just one company could result in you missing out on the opportunity entirely. Competition in this space is not broad. Only a few companies such as $EDIT, $CRSP, $NTLA and $BEAM (not really CRISPR tech) are actually developing these technologies.
Now, as the title of this article implies, I’m willing to hold these stocks “forever”. Now, of course never selling these stocks is likely a stretch, and holding stocks for long periods of time, especially as they go up, can be insanely hard. Unless of course you’re a Yolo master on Reddit and can hold through any stock incline.
Will I be Able to Hold on?
Any seasoned investor knows that holding positions and sticking with your winners is a lot easier said than done. I don’t struggle with cutting losses, but I do have a hard time letting my winners run to significant levels. I don’t mean to imply that you should hold all your winners and not take profits, but certain positions should be meant to hold. This will differ for each investor depending on their outlook for a particular stock or sector, however having above average holding power can be the difference between regular and above average total returns.
Anything worth doing is not going to be easy
A great example of this is Bitcoin. It’s easy to look back and assume that if you did buy Bitcoin in 2012 you would be able to hold until today, however most would not be able to manage this. Given $10,000 invested in Bitcoin in 2012 would be worth around $23 million today, most people would have sold a long time ago, essentially forgoing a significant amount of money.
— Cameron Winklevoss (@winklevoss) August 27, 2020
So, I’ll be taking a lesson from the mad hodlers out there and I’ll do my best to maintain these positions until it gets uncomfortable.
Once again, much easier said than done. First, CRISPR needs to be proven out as a technology that can help humanity. Second, I do have to be careful that my portfolio isn’t ridiculously over allocated to CRISRP (which would be a good problem to have). And third, I have to actually hold on.
Time will tell how this plays out and looking forward to the journey. Anything worth doing is not going to be easy.
If you have high conviction in a position or sector I would love to hear about it below, please leave a comment for the group.
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