Andy Kessler recently said in an interview:
It is doctors that are the problem with medicine. Why? Because they are human (after all), and humans don't scale, they get more expensive. The trick is to embed their knowledge and expertise in silicon and software and algorithms and deliver it cheaper every year.
After reading that, I instantly thought of among my favorite momo's, Intuitive Surgical (NASDAQ:ISRG). About one-fifth of doctors not using Intuitive's DaVinci device said they would like to but did not have practical access to a DaVinci device despite the hospital having a machine. Piper Jaffray analyst Timothy B. Nelson said this suggests potential future sales.
Valuation is definitely lofty, but the company continues to beat analyst estimates and at $1 million per machine, the company only has to sell 1,000 Da Vinci's to do a billion in sales. With that kind of potential, I'm buying and holding until the story fully unfolds.
ISRG 1-yr chart:
Disclosure: I may be long the stocks mentioned above for myself and clients. Not a recommendation to buy or sell any security.