Michael Kelly & Andrew S. Teufel 
Fisher Investments on Health Care 

The Fisher Investments On series is designed to provide
individual investors, students, and aspiring investment
professionals the tools necessary to understand and analyze
investment opportunities–primarily for investing in global
stocks.

Each guide is an easily accessible primer to economic sectors,
regions, or other components of the global stock market. While this
guide is specifically on Health

Care, the basic investment methodology is applicable for
analyzing any global sector, regardless of the current
macroeconomic environment.

Following a top-down approach to investing, Fisher
Investments on Heath Care can help you make more informed
decisions within the Health Care sector. It skillfully addresses
how to determine optimal times to invest in Health Care stocks and
which Health Care industries have the potential to perform well in
various environments.

* Explains some of the sector’s key macro
drivers–like its defensive characteristics, economic cycles,
and investor sentiment

* Shows how to capitalize on a wide array of macro conditions and
industry-specific features to help you form an opinion on each of
the industries within the sector

* Takes you through the major components of the industries within
the global Health Care sector and reveals how they operate

* Offers investment strategies to help you determine when and how
to overweight specific industries within the sector

* Outlines a five-step process to help differentiate firms in
this field–designed to help you identify ones with the
greatest probability of outperforming

Filled with in-depth insights, Fisher Investments on Health
Care provides a framework for understanding this sector and its
industries to help you make better investment decisions–now
and in the future. With this book as your guide, you can gain a
global perspective of the Health Care sector and discover
strategies to help achieve your investing goals.

Inhoudsopgave

Foreword ix

Preface xiii

Acknowledgments xvii

Part I Getting Started in Health Care 1

Chapter 1 Health Care Basics 3

Health Care Basics 5

Health Care Characteristics 7

Chapter 2 The US Health Care System 19

Why Does It Cost So Much? 20

Private Versus Public 25

The Regulatory System 30

US Health Care Reform 33

Chapter 3 Brief Overview of Health Care Systems by Major Countries 37

Japan 38

Germany 42

France 45

United Kingdom 48

China 52

Chapter 4 Health Care Sector Drivers 57

Defensive Nature of Health Care 58

Innovation and Patent Expirations 61

Political/Regulatory Developments 63

Part II Next Steps: Health Care Details 67

Chapter 5 Health Care Sector Breakdown 69

Global Industry Classification Standard 70

Global Health Care Benchmarks 71

Pharmaceuticals, Biotechnology & Life Sciences 74

Health Care Equipment & Services Industry Group 90

Health Care Providers & Services 97

Health Care Facilities 98

Health Care Services 99

Managed Health Care 102

Health Care Technology 106

Chapter 6 Challenges in the Health Care Sector 111

Slowing Growth in Mature Markets 112

Legislation and Regulation 115

Responding to Challenges 119

Part III Thinking Like a Portfolio Manager 127

Chapter 7 The Top-Down Method 129

Investing Is a Science 129

The Top-Down Method 132

Top-Down Deconstructed 138

Managing Against a Health Care Benchmark 145

Chapter 8 Security Analysis 151

Make Your Selection 152

A Five-Step Process 153

Important Questions to Ask 161

Chapter 9 Make Your Portfolio ‘Healthy’ 169

Strategy 1: Adding Value at the Industry and Sub-Industry Level 170

Strategy 2: Adding Value at the Security Level 176

Strategy 3: Adding Value in a Health Care Sector Downturn 176

How to Implement Your Strategy 177

Appendix Reference Material 181

Notes 187

About the Authors 193

Index 195

Over de auteur

MICHAEL KELLY is a Health Care Research Analyst at Fisher Investments. He has a master of science degree in finance from Saint Xavier University and holds the CFA¯® and CFP¯® certifications.

ANDREW S. TEUFEL has been with Fisher Investments since 1995, where he currently serves as a Vice Chairman. Prior to joining Fisher Investments, he worked at Bear Stearns as a corporate finance analyst in its Global Technology Group. Andrew also instructs at many seminars and educational workshops throughout the United States and United Kingdom, and has lectured at the Haas School of Business at UC Berkeley. He is also the Editor in Chief of Market Minder.com. Andrew is a graduate of UC Berkeley.