Topic: Buying Stocks: Do You Know Investing In Pharma Is Almost As Risky As Crypto (Read 84 times)

Of course, crypto is unique and decentralised. But I'm comparing it to the Pharma industry in the sense that they are both volatile.

Uhm...when I say pharma, I just don't mean purchasing drugs like a drug dispensery. I mean investing directly into those pharmaceutical companies (Pfizer, Novartis and the rest). Like you put in your money,  buy stocks and hope for them to yield positively so you can get dividends for your investment.

Yh, I get you. But then again, investing in all Crypto currencies out their could prove draining to your pockets as there are lots of crypto currencies out there. What if some of the Crypto currencies you happen to invest in become obsolete

There are lots of businesses our there or investment that command higher risk potentials. Are we going to be comparing all of them to crypto? Crypto investment is unique, that's what makes it different from other forms of investment. Bitcoin is decentralized and comparing a centralized investment and something that decentralized doesn't really make much sense. The government and it's agencies regulate the pharm but no one regulate Bitcoin or control it.

Any investment you want to embrace, just know that there are risk behind that particular investments because anything can happen that will make you to lose your money even though other people that are doing the business are doing well, but if you can find out about those that is doing well in that particular business, you will found out that some of them experienced what you are experiencing now.

If you don't know that investing money on BTC is a risk, you better know it now because some people see BTC investment as a simple investment you can just invest money today and start earning plenty money from the investment tomorrow, but one advantage about BTC investment is that if you can be bold to take the risk and invest huge amount of money on BTC and hodl like 5 or 6 years before you can sell, I believe you will know that BTC investment is the best investment you can take the risk to invest.

The only risk I see in pharmacy is that if drugs are bought in large quantity without considering the expiry date, and it is stored in your hand for too long you might be at risk of selling expired drug which might lead to NAFDAC Puting you behind bars for ignorance. Investing in drug should not be much except only those that are most frequently needed, to avoid loss and also risk of selling expired drugs.

Investing your money into a business needs a proper and thorough research about the background of the company. You just don’t invest because of the reward you stand to get after investing in such companies products. There are a lot of recognised and prominent companies and businesses that are open to investors today, but if you don’t go for the right ones, you’re on a higher risk of losing your money. I don’t know much about the pharmaceutical industries but with what you’ve explained, it will also pose a risk to invest in them and less risk after investing in well known pharmaceutical companies with good reputations. All investments are risky but chowing the one that will give you more comfort of not losing your money is the best thing to do. Just like bitcoin is the best to invest in all cryptocurrencies and involves less risk, that is how all other investments in stocks of an business should be.

The truth is that there is no market which is totally risk averse. While most markets have some risks associated with them, there are markets far more risky than the others, for example the Crypto and Pharma industry. Pharma like Crypto is a very volatile sector. The ever-changing landscape of drug approvals, clinical trial outcomes, and regulatory processes can make shares and stock values rise and fall at any given time. While a pharma stock can rise ∆ exponentially, especially when there is news of a successful drug trial or a break through medication, it can also plummet drastically when companies experience regulatory setbacks or their drugs are found to be doing more harm than good. And if such happens, the stocks are likely to fall beyond recovery, reason being that pharma companies are reputation based companies, they work on trust because they deal with human wellbeing. So, any drug scandal could prove fatal to the reputation of companies in this industry. And when this happens, companies can be redlined. And sales dwindle. Therefore, investors refrain from investing further, thereby affecting share price and stock value.
However, companies like Pfizer, Novartis, Johnson & Johnson, etc are more established with a long history in the business along with having a very high market cap, so they can be safer to invest in. But there are other emerging companies that are not proven, making them a lot less safe for investment, and some of them never even make a breakthrough. So, when you put it on a scale, the risk outweighs the reward most of the time.
In conclusion, the world of investment is full of risks, with constant emphasis on high-risk, high-reward. But, instead of diving headfirst into an investment, take a couple of steps back to think, make extensive research and weigh the potential rewards against the inherent risks before pulling out your hard earned funds to invest.