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That is a very grand title for a newsletter. But, I kid you not, what I am going to discuss this month is a rather overlooked but massively important factor in the success or failure of an investment strategy.

Every serious investor

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

has thought through this element of 'the game'. Quite simply, if they have not, they are not.

So what can be this important?

SELLING.

Simple, huh?

Of course it is. When it comes down to it, most things in life are really quite s

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

mple. So is this. But, oh-so overlooked.

If you begin to study investment as either a hobby, an intellectual pursuit or a profession, you will find massive quantities of books that can guide you. I know, I have quite a few of them.

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

However, the majority will help you to choose an investment. Stock or fund picking is a vital element in the investment process.

But, selling is where the profits are. After all, if you never sell, you never really make a 'real' pro

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

it, it is just a theoretical one. And theoretical profits do not pay the bills.

Years ago, I used to know a semi-retired farmer in the UK. He was a nice guy who had sold a pig farm whilst it was profitable and was living on his larg

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

e 'capital'. He found investing to be more regular as an income source! (At least that is what he said.) Without trying to be mean, he wasn't the sharpest knife in the drawer and his investments backed my theory up.

The first time I

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

was invited to his house he delighted in firing up his pc to show off his investment software and display to me his 'portfolio'. At the time he had holdings in about 100 different UK listed companies. But, about 70% of these holdings

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

were losing money! I was amazed. He had boasted to me that he had 'never made a loss on a share'. Being unable to resist, I quizzed him relentlessly that evening until I found an answer I believed.

The truth was that he had bought

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

ll these shares but had NEVER actually sold one. He had not made 'a loss' because he didn't turn the shares back into cash. It also meant that he had never actually made a profit either but he neglected to mention that...

As you mig

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

ht be realising, this did not make him a good investor. He had not figured out how to either buy or sell shares. It was all pure dumb luck either way! When you also consider that I am talking about perhaps 1996 or 1997, towards the e

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

d of the greatest share bull market of all time, he was doing worse than pure dumb luck!! During the world's most profitable period for investment EVER, he had found a way to lose money consistently. That takes real skill.

Most peop

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

e that invest money will never make the kind of errors of judgement that this man made. Most people will never have the money available to lose and it not alter their lifestyle. That may be a blessing in disguise!

With hindsight, as

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

I got to know him better, I began to realise that he was actually a gambler at heart ... horses, cards, shares, spoof (though I never figured out the rules to that) and I'm sure more that I wasn't aware of.

However, most of us are

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ot gamblers. We have some spare money and we want to invest it for the future. Hopefully, it will grow into something more substantial for when we need it. Perhaps it will pay for a child's education or our retirement. Whatever.

The

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

issue that you need to think about when making an investment is when to sell up. The reason is quite simple, it is all about discipline. Even the best companies go through bad times. The course of a business cycle virtually guarante

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

s this. We however, want to be selling during the good times for a profit, not holding on until it is too late for a loss.

Some investors have a preset figure in their mind - when the price is xx I'll sell. Others use a stop-loss sy

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

stem, or better yet, a trailing stop-loss. Each has a place in the investment world.

Alas, we can't all behave like Warren Buffett and buy with the intention of holding 'forever'. Firstly, he is better at this than us. Secondly, he

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ries to buy a business whole, which is probably out of your reach (I know it is out of mine!). And lastly, though I know he will hate to make a loss more than most other people, if it all goes wrong, he can afford it. His life will n

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ot be ruined by losing money (and he has been so successful that even his reputation is unlikely to be ruined).

Just remember that the simplest formula for making money in an investment is to 'Buy low and sell high'. Easy stuff. But

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

when things are high, you need to remember to sell. Don't let greed get the better of you.

It has happened to me and probably every investor who ever lived. He or she held on too long and turned a decent profit into a sickening loss

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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But, there is more to resume writing to meets the eye. For one you are actually to close to yourself to write a brilliant resume.

Planning for the Future, Planning for the Now, Planning for Success - what planning can do for you and your business and what NOT planning can do for you and your business.

Where ever you see, everyone has a website. And there are certainly reasons behind it. You can earn real money with the help of your website. So, let us see how you can have a website of your own...

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