Fast Growing Healthcare Companies – An Interview with Jess Bell-Allen and Equity Mates Podcast



Maddie (00:48):

Hello and welcome to your in Good company. A podcast makes investing accessible for everyone. I’m Maddie, and as always, I’m in some very good company with my co-host, Sophie.

Sophie (00:59):

Hello Mads. I’m so excited for today’s episode because we do a bit of a deep dive into the healthcare industry and it’s kind of nice to have a look at an overview, but also divulge that word that we’ve been hearing a lot about, which is MedTech.

Maddie (01:13):

Yeah, I think this is an area that has been changing super rapidly over the last couple of years with Covid, but I think probably the most exciting thing is what’s really ahead of us now and where are the opportunities in this industry? Is it going to keep growing at this really fast pace? So we dive into all of those things with Jess today. She is a bit of an expert in the area, and I have to say it is a very exciting chat. Today we are excited to be joined by Jess Bell Allen, member of the investment team at TDM Growth Partners. TDM is a high conviction, long-term growth investment firm started over 17 years ago with just $1 million and have compounded capital at north of 25% per annum since to have around $2 billion under management. Today, TDM invest in both private and public companies around the world with a focus on companies that are run by outstanding management teams have large growth opportunities and have clear and growing competitive advantages now and into the future. According to the TDM website, despite her many years working in finance, Jess will readily admit that her personal investment strategy to date has not been what one might consider fiscally sound holding a highly concentrated position in her wardrobe. Jess has a particular interest in opportunities in the healthcare industry, which is what we are very excited to be talking to her about today. Welcome, Jess.

Jess (02:31):

Thanks for having me guys. I can’t wait to chat through it all.

Sophie (02:34):

So Jess, we always start off in the same way and we’re going to ask you what is the best thing that’s happened to you this week?

Jess (02:40):

Yeah, well we were just chatting before. I think the right answer I have to give was spending time with my family for a big, big birthday, mother’s Day and all those sorts of celebrations. So having lived abroad, as you mentioned for a long time and even interstate travel being so challenging in the recent years, even though I have back in Australia, that was kind of really special to have that opportunity and I’m kind of increasingly appreciating them as I get older. But I think the answer I would otherwise give, and this is cheating a bit, pushing out to two weeks out. So I was just in Toronto meeting one of our portfolio companies that we invested in at the end of last year. So the whole process was done over Zoom and so it was the first time I got to meet them and the people in person, there were lots of hugs. It was really exciting, really awesome. And I think we mentioned at TD M1 of the core tenets around investment philosophy is people and culture and you just can’t make up for being in person. Zoom only goes so far. So to get past the screen and be there and experience the culture in person and get a real sense for what they’re building was just awesome.

Maddie (03:49):

I completely agree with that and I must say it would be very nice to get on a long haul flight right about now as well. I never thought I would say that, but I’m actually just craving sitting on a plane for like 24 hours.

Jess (04:00):

It was great, and you just kind of tune out, do catch up on some work, watch a bunch of movies. I loved it.

Maddie (04:06):

Great. And if you could have dinner with anyone, who would it be and why?

Jess (04:11):

Yeah, so I was listening to your episode from last week with Chantal and she stole my answer. Oh no, it was Gabrielle Chana. I think she’s phenomenal and I loved how she just completely changed the mode of women’s fashion and was just a real pioneer and set up this incredible platform that’s built a brand that’s been enduring forever. But I did come up with a background answer as well, which was, and this is a bit of a funny one, it’s Winnie the Pooh. So I was, oh,

Maddie (04:38):

I love that.

Jess (04:39):

I was always obsessed with Winnie the Pooh as a kid. I loved just all the different characters, how they represented different facets of kind of human behaviour, but he’s just a really chill guy that focuses on what’s most important in life, which is kind of friends and supporting those around you. And I think there’s a lot I could learn from him just by sharing a pot of honey or something

Sophie (04:59):

Just lazing around all day eating honey. I love that

Jess (05:03):

Sounds great.

Sophie (05:04):

And if you could be a stock or company, who would you be and why?

Jess (05:09):

So you mentioned it in the beginning. Something I love possibly more than healthcare or definitely more than healthcare is fashion. And so if I think of a company that kind of shows how fashion business technology can all coexist, I think of farfetched. And so what I love that they’ve done is that they have the consumer facing side. They’ve really enabled luxury to go through e-commerce, but they’re doing awesome stuff on the B2B side as well. So they’re this really complex stock with a lot going on and I tend to have a lot going on and I think a world and an industry where there’s a overrepresentation I would say of hoodies and sweaters, it’s nice to try and prove out that luxury can exist in investing and finance as well. So that’s my pick for that one.

Maddie (05:55):

I love it. Well Jess, I want to go back to the healthcare topic. Let’s get into it. For someone who might be interested in investing in this space, can you give us a bit of an overview of the healthcare industry?

Jess (06:08):

So really tough one to sum up. So it’s huge industry, obviously we all engage with it at some aspect at some point in our lives. And so the global healthcare industry is over $10 trillion. I think Australia alone is one 50 billion. So to break it down, it’s challenging, but the way I kind of think about it is all the stakeholders and kind of the participators in the industry. So the first to start with very obviously is us as consumers, and I say consumers versus patients very intentionally and we can come back to that, but so we are the ones sort of engaging with the system. Then the next layer up I would say is sort of the products and services that you engage with. So that’s your pharma industries, that’s medical devices, that’s biotech, all those things that are being produced that the consumer is then engaging with.

You’ve then got another vertical pillar, which is what we call providers typically. So that’s the hospital systems, their healthcare systems, just your local gp, all those people that are administering those. And that’s an ecosystem in and of itself. And then the next layers up from there are really the overarching things of insurers, health insurance, those that facilitate reimbursement and all those policies there and then the regulators as well. So obviously anything that comes to market for pharma, medical devices, all of those have to go through regulatory approval. So it’s the TGA in Australia, the FDA in the us. So you’ve kind of got all these different layers and that’s what I love about healthcare, but what can really blow your mind sometimes that it’s hyper complex and when you’re looking at even one piece, you have to be cognizant of all those other pieces and how they kind of interrelate and interreact.

I think though the overarching theme that I spend a lot of time on in healthcare is kind of this concept of, well, consumerization of healthcare, I would say the consumerization of pick your thing is a very overused term. When I was in San Francisco, we loved consumerization of the enterprise. Now we’re talking about consumerization of healthcare, but it’s a very prevalent topic just because you kind of think and you look through all these tools that you engage with in your normal life, that experience is far better than anything you have to engage with on the healthcare side of things. And healthcare is fundamentally important to how we live our lives and there are so many costs associated with not engaging with healthcare on a regular basis. So I think that’s where I spend a lot of time and what a lot of the industry is heading out. What are these tools that facilitate within any of those verticals? I just mentioned reducing friction to the consumer, and that’s why I say consumer because we’re looking for that aren’t just separate, siloed, you’re a patient, that’s the medical system. We want consumer experiences that make it easier for us to engage with healthcare.

Sophie (09:04):

I guess you talk about consumers in the healthcare space and I think over the past couple of years consumers have been I guess faced with a lot of challenges in terms of healthcare, especially with the pandemic and because of the pandemic. I guess, can you talk us through some of the biggest changes that have occurred because of the pandemic, I guess on a consumer level, but also I guess more broadly to the healthcare industry?

Jess (09:26):

One of the biggest things is that it’s accelerated that trend from the concept of patient to consumer because we’ve had to learn to engage in a more digital fashion. And what’s been really interesting, I think telehealth is the biggest example of that. It’s the usage of that has gone up something like 38 times over the pandemic and while it has dropped off a bit while in-person has returned, and I suspect in-person is always going to be a really strong piece of healthcare because there’s so much trust and personal elements to it that you want to have that touchpoint when you need, but that engagement has remained really high. And I think what’s been really cool as well is that it’s forced the regulators and the slower moving systems to come up to speed with that as well. So telehealth in the US say, and I know here in Australia they have reimbursement codes. Everything’s kind of caught up to facilitate that digital engagement with healthcare, which I think had we not had covid taken many, many, many years. So that’s really exciting. I think we still got a long way to go on that front, but it’s been really cool to kind of see that digital evolution, not only from the consumer aspect, but really with the regulators and insurers getting on board as well.

Maddie (10:38):

It actually is really quite crazy to think even just two years ago how different the healthcare industry was. I was chatting to a friend the other day and she was saying that she had a doctor’s appointment and it was only 20 minutes and she was running 15 minutes late and she was so stressed, she called her doctor in the car to say that she was running late. She said, oh, that’s fine, we’ll just start the appointment over the phone. So she basically did the entire appointment on the phone and then when she got to the gp, they just gave her the script in person and off she went. I was like, that is genius. Far more efficient.

Jess (11:11):

Exactly, and it works. And that’s what covid has been great for. It proves that it works and there are so many things like prescription filling, all those just regular touch points which really lend themselves to that model. And so why not use that model for those types of engagements and preserve the real costly time engagements for those conditions or consults that require them.

Maddie (11:33):

So Jess, there can often be great investment opportunities in areas that are undergoing major transformation. What kind of technological shifts do you think we should be keeping an eye out for? When we’re looking at potential investments in the healthcare industry,

Jess (11:47):

It’s a lot of that consumerization theme. So things that facilitate the reduction of friction for the consumer in engaging with healthcare. So that’s seen across well and not even the consumer, honestly, like the provider as well, the clinicians, those people. My dad’s a doctor, my mom’s a doctor. This is why I love healthcare in part, but I remember growing up scanning his patient notes through some little printer scanner looking thing so that he had them on file on a computer because everything was still done on paper. So the scope for software to improve the physician experience and how they then engage with patients and record and measure their data, there’s just so much opportunity there and I feel like we’re only just scraping the surface. I think the other piece, which again I hate to say because it sounds repetitive, but AI, obviously it’s pervading everything, and we’ve seen some really cool examples of that in recent times.

So Moderna who developed the vaccine for Covid, that was all technology that had been built over many, many years, but it’s come to the forefront now and they developed the Covid vaccine in less than 48 hours. And while it took over a year for that to then get approved, which is where I’m chatting about the regulatory catchup, that needs to happen at some point, but that’s pretty phenomenal. And so that AI goes beyond just drug development and discovery, but then also to the physicians, to the consumers augmenting decision-making greater paddock recognition to calibrate across all those factors and improve the patient care outcomes.

Sophie (13:21):

I did not know that they developed the vaccine in 48 hours. How did they do that?

Jess (13:25):

Wild, because ai, well, it’s mRNA, so it’s kind of like a code like your DNA, and they basically got a conscripted code of the virus from China translated that into a vaccine. I’m grossly simplifying it and probably getting it wrong, but there’s awesome podcasts out with the CEO, just talking through how they set that up and it’s pretty phenomenal what they’ve been able to achieve.

Sophie (13:49):

Yeah, remarkable. Yeah, I think the also really cool thing about this is if you’re talking about the consumer, the consumerization of healthcare, if you’re looking at investment opportunities, I think us as consumers, we can sit back and be like, what’s making my life better? What am I enjoying? What am I using? And that’s an easy, I guess, avenue to look at and go, okay, that’s a really cool product or service that you could look into further.

Jess (14:09):

Yeah, totally.

Sophie (14:10):

As a long-term investor, how do you envision the healthcare industry changing over the next 50 years? I know we’ve had really rapid change in the past two years because we’ve had to do that, but do you think that change is going to continue into the future?

Jess (14:23):

Yeah, so I would say to a degree as we touched on, I feel like, and I used to spend a lot of time in retail, I see a lot of similarities across the two now actually. And I always thought and profess that retail would remain offline as well as online despite the prevalence of e-commerce. The same thing here in healthcare. Telehealth will remain. I don’t think it will take over. And for those reasons we talked about even more importantly than in retail, that trust element, this is very sensitive data, healthcare data that we’re dealing with. So that offline component is going to remain incredibly important, but I think we’ll be able to see the triaging and allocation of case consults between the two channels now to optimise for that. And then really it’s just continuation of that trend of making things easier for us to engage with the healthcare system.

And as we kind of touched on before getting the regulators to catch up, so if I jump back to the Moderna example, so vaccine developed in 48 hours. Obviously safety is paramount. We have to go through all these processes to get it approved before we roll it out to nations. But that vaccine that got approved in, when was it? December, 2020 was the exact same vaccine they came up with in January, 2020. And again, a year no changes, but a year is a really short time actually in the s scheme of things that we typically see. So we’ve proven again that we can move faster. So the way I kind of think about it and would love to see the industry trend is kind of leveraging all those learnings and looking at how we can move faster to help people. Earlier

Sophie (16:00):

We’ve spoken about the healthcare industry being such a large space, and you’ve mentioned that there’s many layers of different players including the big behemoths. You’ve mentioned Moderna, but also we hear the term MedTech coming through and a lot of smaller players coming up in the ranks. Do you think these smaller tech companies with this new technology are going to be able to come through, I guess, and compete with the larger companies? Or are the larger companies always going to have their place?

Jess (16:27):

Yeah, I think I would say the are behemoths for a reason, so they will remain incredibly competitive. Having said that, with legacy comes less agility. So there’s a lot to be said for these younger companies coming through that can move faster in a newer age and a new way of approaching things. And particularly as the ecosystem and landscape evolves around them, they can kind of grow up with that in a much easier way without any of that baggage. So I would certainly say keep an eye on all of them. There’s some phenomenal companies coming out there. I think the challenging thing is that to your point, there is a proliferation of them and so it does feel a bit crowded a space. So there will be some consolidation and the real players that win are going to be those that do the best job of gathering data to prove the efficacy and the quality of their product, educating the market and regulators, et cetera. There’s a whole sort of framework we can chat through at some time. But yeah, I think I would certainly be watching out for those ones that can move a lot faster.

Maddie (17:33):

Well, I have to say I’m just glad we finally have an online alternative in telehealth to Dr. Google because that never gave me much hope when I put in my symptoms. But we are going to take a quick break for our sponsors and we’ll be right back to hear what Jess believes makes a successful investment in the healthcare industry

Before the break, we chatted about some of the major changes that the healthcare industry has been going through, which in the context of companies that have the ability to change the world, healthcare is pretty up there. So what excites you the most about investing in this area?

Jess (19:34):

Yeah, I think, well that very point, and we kind of touched on big numbers at the beginning, it’s a huge market. It is well behind many other industries in terms of technological innovation. I talked about scanning dad’s patient files. That still happens, which is scary to think. People are still faxing scripts to pharmacies. I don’t even know what a fax machine looks like anymore. So the scope and the runway and duration of growth is very much there. And so I think I find that incredibly exciting. I think the other element I love is that particularly in the context of TDM, so we look at three circles of competence. We’re all generalists, but if we kind of hone in on three circles of competence, they’re consumer technology and healthcare. And within healthcare, we are seeing a real convergence of that kind of overlap with consumer technology.

And that’s what I really love too, is that we’re kind of effectively operating at the epicentre of all three. So things like our consumer companies, I can take a lot of learnings from them to now apply to the healthcare space to see what might be successful there and kind of overlay in my frameworks. And I find that really fun. I think the final, as I touched on my entire family is medical. Both mom and dad are doctors. My brother’s a doctor, my sister’s a physio, so I was a black sheep. You’ve gone off grid. I went finance. I wanted to play with numbers, not people in that respect. And I think it just provides me a chance to kind of contribute to the conversation around the dinner table.

Sophie (21:08):

I love that, mate. I used to work at a doctor’s surgery as well, and I remember having to try and translate their writing and I’m like, this is inefficient. I can’t read what you’ve written.

Jess (21:19):

Well, and doctors are notoriously known for horrible handwriting, so let’s just have transcription and AI overlays of natural language processing and there we go.

Sophie (21:29):

So I guess we’ve also touched on a little bit that there’s a lot of different types of medical companies that you can invest in. You’ve got the small ones, the middle ones, the big ones. I don’t know, that’s bad descriptions, but big ones. But what do you think is the most for all of the more, it could differ depending on where they sit, but what do you think are the most common characteristics of successful medical companies?

Jess (21:54):

Yeah, so I think where I would start is with medical devices. And I do that partly because that’s where I spent most of my time so far and have developed some sort of frameworks for how I think about it. But as I’ve spent more time in other verticals like biotech, pharma, a lot of that framework I’ve seen be quite translatable across those different industries. And I think we’re seeing this real convergence in part driven by this consumerization aspect of what great looks like across a lot of them. But if I kind of break down in the medical device space, I have sort of a framework, and it’s the framework we really use a lot at TDM and with a lot of our companies that has four pillars, them being product development and technology, market access, education and go to market. So if I touch on each of those, I’ll keep it super brief. And if you want to learn more, there’s a whole video that I did with my colleague,

Maddie (22:46):

I would recommend it. I’ve watched it and I loved it.

Sophie (22:49):

We can share it with everyone.

Jess (22:51):

Oh, thanks guys. But yeah, so product development, technology, that’s sort of the obvious one, just consistent innovation coming to market with new things. But really the key theme there that we’re seeing today, and what I would look out for in medical devices is this overlap of not only the hardware, but software and data and analytics. So medical devices are evolving from a single product to what we think of really now as a system, a system of engagement that has touch points into the consumer, the physician, the reimbursement. It’s just kind of bringing that all together. So that’s where I get really excited and spend a lot of time is looking at this concept of the connected device and monitoring continuous iterations on that. And what’s really cool about that too, by introducing a software element is that you can iterate more quickly versus recreating new devices, which is a longer lead time.

And so historically we’ve seen that iteration process be a lot slower by virtue of that fact. So that’s product and technology market access. We’ve touched a lot on this concept of reimbursement that goes a long way to affordability of these devices for people. And reimbursement can be incredibly challenging to navigate. I spend a lot of time looking at US healthcare in particular, and that’s just blow your mind difficult. So looking at these companies and seeing what they’ve managed to do on the reimbursement side, are they set up with teams that are dedicated to this? Just things like that because that piece becomes fundamentally important to facilitating access to the product so that people can use it, which you need to generate revenue. And then education is huge. I think that’s something, it seems really obvious, but I keep seeing it in our companies that particularly with new novel therapies and technologies that are coming to market, medicine is quite, you think of doctors, they’ve been doing things the same way for a long time.

To challenge that and break that mould, it’s really hard. So you’ve got to really be focused on educating us as the consumer, the doctors, and bringing everyone on the journey together to understand what the product is doing, what it’s trying to achieve. And a big piece of that is the research and having the data to back up what you’re saying. So that’s that third pillar. And then finally go to market. So this is just how you’re getting the product to people. So I think what’s really interesting is looking for channels like direct to consumer, which isn’t possible for all types of medical devices, but we’re seeing a real trend of that where it is possible. And so educating the consumer and then making it very easy for them to get to it, a marketing to them in ways that resonate with where they want to engage with the product. So that’s the very high level brief overview, but across those four metrics, that’s what I’m looking at and that’s what I think can be really helpful to look at to identify where medical device companies might be successful, otherwise not.

Maddie (25:54):

It’s a super interesting framework, and I think you’ve touched on quite a few things there that would be super useful for ourselves to be able to apply when looking at this area. Given you are the expert, I’m very excited to hear. Can you tell us about any of the healthcare companies that I guess you’ve found using that framework that you’re really excited about at the moment?

Jess (26:15):

Yeah, for sure. So I think one is, and this is not one we’re invested in, just a disclaimer, is Dexcom. So they’re a continuous glucose monitor. So if you kind of think about diabetes historically, and even some people today are doing the fingerprint, getting your blood sample, having to test that, that is not a user-friendly experience. And particularly if you think of poor little kids who are having to do that, it’s not fun. So what Dexcom have done, and they’re not the only ones, but I really like just along that framework, how they’ve developed their product is they’re a continuous glucose monitor. So it’s kind of a little patch that has a very small filament that kind of goes under the skin to continuously monitor your blood glucose levels. And so from a form factor or hardware perspective, they’ve done an awesome job of making that a bit more subtle and easier to use.

And then from the software and data analytics side on, if we’re thinking that first pillar of product development and technology, they’ve done a really awesome job of building out that ecosystem of app engagement and kind of driving that, and even with the physician too. So it’s a consolidated sort of platform where you get that single view of the customer or consumer. So this is another example of where you’re seeing those retail elements come into the healthcare side. I think the other really cool thing they’ve done, if I jump around on the education and go to market side is that their product is so consumer friendly that they have built a group of patients or users of the product called Dexcom Warriors who are effectively evangelists of Dexcom. And so that’s like free marketing. You’ve got these people out there saying how great Dexcom is, and that’s a really true strong testament to the power of the product if you have people willing to do that.

So I think that was something I’ve always found really cool with what they’re doing and what I get pretty excited about their future prospects for. Because you’re seeing now too, people without diabetes are using it because that as part of the evolution, oh wow. Yeah, we all want to know. I think there’s growing interest in monitoring our health and blood glucose is one of those. So to be able to encourage people who don’t have to wear it to wear it because of that ecosystem that they’ve built and the ease of engaging with the platform, I think is pretty phenomenal.

Sophie (28:41):

Yeah, it’s really saying something.

Jess (28:44):

I don’t want to wear one, but others might.

Sophie (28:48):

I am curious, you’re looking at the healthcare space every day, but for people like us who aren’t necessarily engaged on a day-to-day basis, what are I guess the resources you go to look for investment opportunities, but also to learn more about the healthcare industry?

Jess (29:04):

So there’s a bunch of newsletters that I follow. One’s like Health Tech Nerds, which is my favourite. They’re great. I’m such a health tech nerd. So for writing it,

Sophie (29:14):

I love a newsletter, it’s great. Just hits your inbox if you have a second to read it, go wild.

Jess (29:18):

Exactly all about it. Rock health are another one that do that. So they’re sort of an investment firm in the US that spend a lot of time in the healthcare space. And then there’s just MedTech dive by a pharma dive. They’re kind of like an aggregation of new sources in the space that I follow quite closely. But really the best resource, and I appreciate, not everyone has access to this, but it’s just people. So I have my family and I interrogate them all the time about things and what they think about things that I’m looking at, how patient pathways work, who they engage with. When I go to the doctor, I’m that really annoying patient that’s like, why are you doing that? How does this work? So I think just being mindful, I’ve always said networks in so many things of life and people are the strongest elements you can learn from. So I think just being mindful of where you can engage with that and keeping across it in that respect. And otherwise, those newsletters are great too.

Maddie (30:15):

I love that point. I think one of my favourite things that I’ve come to learn and know about investing is that it makes conversations with everyone and anyone interesting because you can always learn something new and then you can always apply it to investing.

Jess (30:28):

Yeah, exactly. Investing is all, if I really boil it down, it’s just being curious.

Maddie (30:32):

So Jess, each episode we have been asking our guests who add a stock company news trend or industry to our watch list. And the purpose of this really is to get us thinking outside the box and broaden our horizon in the investing space. Of course, we are not financial advisors, and this is purely for educational purposes, but what are you adding to our watch list today?

Jess (30:53):

Yeah, well, I think it’ll be no surprise that it’s medical devices within the healthcare space. So I think there’s just so many. That framework is really helpful. I really enjoy developing it. I think it’s quite applicable. And so I would say thinking about that, thinking about, to your point earlier, we are engaging with these tools now, there is that consumerization trend. What am I engaging with? What am I using a lot from a medical device or just wellness, broader wellness perspective and looking at that space. And I think there’s a lot of really awesome talent, particularly in Australia. Cochlear is an incredible example of an A SX listed company that’s done phenomenally well in the medical device space. And you can see them now. They originally were just the cochlear device, I shouldn’t say just because a phenomenal invention, but they’re moving into that. They have app controls and things like that is now as well. So just the evolution of the experience of engagement with medical devices is just really cool. And so that’s what I’d put on a watch list to keep a lookout for

Sophie (31:54):

MedTech is actually one of the most popular things that is added to our watch list. Oh yeah. I think over the past maybe, I don’t even know how long, maybe six months, it just keeps getting added and added. So it’s obviously a space to be watching.

Maddie (32:07):

Well, it’s very fast changing industry, I would say. So it makes sense.

Jess (32:12):

Yeah. Yeah, and it’s tricky. It’s really hard. And I think one of the important things about investing in that space is to be patient because things do take a long time if you’re getting in early, approvals take a long time, education is really important. You’ve got to build up your data sets. So it’s certainly a space to be patient in, but it’s well worth the wait.

Sophie (32:35):

And Jess, our final question for you today, what would be your piece of advice for someone who is starting out with their investment journey?

Jess (32:43):

Yeah. Well, aside from listening to equity mates, obviously I think that the biggest piece is identifying early what your strength or circle of competence is. And so that you might be a passive investor and you want to invest in ETFs or just track the market, and that’s fine if you want to be an active investor, really think through where your competitive advantage might be. And that doesn’t necessarily have to be an information because I think today it’s increasingly harder to have a competitive advantage on the information front just given the proliferation and access to information that everyone has. So I think it’s thinking through things like from an emotional standpoint, emotional stability. Do you have duration advantage whereby you’re looking at these models and thinking, look, I’m holding for five to 10 years so I can forebear going on. We’re all experiencing right now, which is really quite scary in terms of a lot of red in the portfolio. But if you have adopted that long-term view and can remain emotionally stable throughout that, given that you have conviction in the business models and the investment thesis, if the investment thesis hasn’t fundamentally changed, then that helps you weather that storm. So I think, yeah, that’s kind of how I think about it. Think through some of the softer elements of investing in how that might provide you with some sort of advantage or guidance as you kind of go through your investing journey.

Sophie (34:14):

I love that piece of advice because I think that people often get very overwhelmed with information and how much information is out there. And I think from our community, a lot of what we get is like, okay, I’m going to start my research, but where do I even start? So it’s nice to think, okay, well what do I do day to day? What are the conversations I’m having? And then kind of find your investment niche or just I guess as you said, your competitive advantage from there.

Jess (34:36):

Yeah, absolutely. And that’s the best part is just what do I understand? What do I value align with that? Then that helps direct where you start your research. And then I think just really understanding and building up a thesis within that realm that you can stay really confident in to help weather the storms that evidently and obviously happen many times over. Sadly,

Sophie (34:58):

Yes. Well, we’re all experiencing that for the first time, so we’re all in it together, but that’s okay. Yep, we’ve been told that it happens.

Jess (35:08):

Well, sadly, history repeats itself and we don’t seem to learn, but at least we can look to previous examples and kind of leverage that and try and learn going forward.

Sophie (35:16):

Exactly. Well, Jess, it’s been an absolute pleasure to have you on today. If anyone wants to read more about TDM or what you do, is there any resources that you could offer up to them?

Jess (35:28):

Yeah, so the TDM website would be the best port of call, and we actually have a lot of pieces that we published there in terms of content, like the medical devices video, we did just opinion pieces about what’s happening in the market today, which I think has been really well received and is really interesting because kind of seeing all this go on and TDM has a 16, 17 year history of investing, and so we have learned a lot through previous cycles that are being applied to how we think about things today. So I think a lot of those are really awesome reads. There’s my colleague Andy actually did a podcast with the equity mates guys earlier on that particular topic. So listening out for that, we have our TDM podcast scaling Up, which interviews a lot of founders of fast-growing businesses to understand their story. So there’s plenty of content out there that we’d love for everyone to get across.

Sophie (36:22):

Amazing. And we’ll make sure that we link a lot of those resources across our socials so they’ll be able to have access. Jess, thanks so much for joining us today. We really appreciate your time.

Jess (36:33):

Thank you for having me, guys. It’s been awesome. Good fun.

Sophie (36:37):

God, it’s so fascinating to learn about healthcare. It is one of those things that does affect us day to day, and I think as investors, it’s a really cool space to be able to determine what affects us, and I guess where we can be looking.

Maddie (36:50):

And I mean like we touched on the episode, it is an area that you can invest in that really has the power to change the world. So I think it’s a really exciting space to learn more about and get involved in. If you are interested,

Sophie (37:03):

We are going to be posting all of the details that Jess has mentioned, anything to do with TDM or healthcare videos or any of her resources across our social media. So join us on our Instagram at YC podcast

Maddie (37:18):

Or jump into our Facebook group YC Investing podcast discussion group. We’ll also pop links to some of the resources in our show notes if you haven’t already. We would love if you could like and subscribe to the podcast or send it to a friend if you enjoyed today’s episode.

Sophie (37:34):

Otherwise, you’ll hear from us next week.

Maddie (37:37):

Catch you then.

Sophie (37:38):


Equity Mates Podcast Related

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