Ryan Leggio: I know you run a relatively concentrated portfolio. Are there any names in particular that you've bought recently that just have terrific risk-adjusted dynamics?
Jerry Jordan: Sure. I mentioned Myriad Genetics. This is an incredible company. They've got a number of products that sort of fall into the OB/GYN space. Their big one is called BRAC Analysis, which is their own proprietary diagnostic test for telling whether you have a biological precursor potential for breast cancer. With the idea that if you can catch this early enough you can do, say, a lumpectomy or something so that people don't have to have a mastectomy. Or in situations where maybe there is a big family history, you can really stay on top of it.
Recently, sales have slowed down because fewer people are going to the doctor. They're concerned about their co-pays. They don't have the money for co-pays. They've lost their jobs so their medical coverage may not be as strong, so they're not going to spend a couple hundred bucks out of pocket for a test like this.
But I think inevitably, this will start to turn. As we get out of this year, comparisons get easier. Whatever health-care plan comes through, if anything does, whatever plan comes through, I think it's really going to focus on diagnostic.Read Full Transcript
So if the government is going to pick up 30 million lives, it would love to find out if you have got prostate cancer in year two instead of seven, if you have got breast cancer in year two instead of year seven. Why? Because it's better for the patient, and it's better for the payer.
And so I think you are going to see a real move into that. And the business just gets better as you look out. It is also not really strongly economically sensitive. The valuation is reasonable.
Another name we have been buying in here is a company called NetEase I said I wasn't a big fan of technology, but one part of technology we really own right now--and I think this gets to our ability to find really interesting areas to invest in--is we've got about 6% to 8% in, I don't know, four or five Chinese video game and Internet companies. They're listed in the United States, but the businesses are in China.
One company, NetEase, has got a couple of games that were delayed that are now coming out that should really drive growth over the next year, year and a half. It is a 12, 13 multiple stock. I think it will grow 30% a year for the next two years.
And I think China's just going to continue to boom along here. Three years from now, I don't know. But for the next 18-24 months. They're going to make things happen.