What are asymmetric’ opportunities? It’s receiving information before the mass majority of consumers and investors are exposed to it. As we’ve seen in many investments, the more an investment is talked about, the more likely it is that you’ve missed a great position to leverage your capital. Early investments capture the biggest returns, before it receives a wave of funding. So essentially, all investors should be looking for ‘asymmetric’ returns, which is a big upside and the downside is mediocre when you weigh the two factors of each.
Even though COVID-19 has established on-going changes for consumers, investors, and businesses owners, and essentially, everyone. The change in healthcare has experienced the most impactful changes, and it’s quite remarkable really.
The pandemic has caused more restrictions globally, but in healthcare the restrictions causes issues in face-to-face consultations. The market demand for chronic issues, and acute hasn’t changed, if anything, it has experienced an influx—while doctors can’t really meet the demand because it has become more risky, and complicated, for in-person queries, thanks to new restrictions.
This has given birth to the expansion of a ‘telemedicine’, and ‘digital healthcare’ market. With the help of medicine being digitized with an ongoing long-term trend, Teladoc and Livongo were able to merge companies—offering shareholders 0.5920x shares of Teladoc Health plus cash of $11.33 for each Livongo share, (and a special dividend offer). This is a $20 Billion dollar merger, and this was achieved through newly found market conditions thanks to COVID-19.
More importantly, with new technology comes new opportunities—and savvy investors who are in search information before the public is exposed to it, gives them asymmetric opportunities.