−7.5%
since Oct 6
The idea
I believe the economy is shifting from rewarding what we already know to rewarding the act of discovery itself, and AI is accelerating how many attempts get made. Rather than guess which lab or biotech hits next, I own the toolkit that gets paid regardless: instrument makers, simulation and AI-for-science software, DNA reading and writing, and lab automation, spread across roughly 20 companies so no single name carries the bet. I keep 9% in cash for weakness and I'm thinking in years, not quarters. I'd rethink this if discovery spending itself stalls, not just if one tool falls out of favor.
What it owns
- These companies sell the core instruments, consumables and services that labs worldwide depend on for research and diagnostics, collecting revenue across nearly every discovery attempt regardless of outcome. · Thermo Fisher ScientificIt is the largest supplier of instruments, consumables and services to research and diagnostics labs worldwide, collecting revenue on nearly every discovery attempt across the globe., DanaherIt owns a portfolio of life-science and diagnostics businesses that grow as biology research and drug production scale up, and it regularly expands its toolkit through acquisitions., Agilent TechnologiesIt supplies chromatography, spectroscopy and lab instruments plus the recurring consumables and services those systems require, with a large installed base in chemistry and biology labs., Waters CorporationIt dominates liquid chromatography and mass spectrometry instruments used to identify molecular composition, with high-margin recurring revenue from consumables and service on its installed base., BrukerIt sells advanced scientific instruments including NMR, mass spectrometry and microscopy systems that frontier research cannot conduct without., Mettler-ToledoIt makes precision balances and measurement instruments found in nearly every laboratory and quality-control operation globally, essential for the start of every experiment., RevvityIt sells reagents, instruments and software that life-science laboratories and diagnostics providers consume as they conduct research and testing work.34%
- These companies provide the software platforms that let researchers and engineers test designs on computers before building them, shifting discovery work toward computation and away from pure trial and error. · SchrodingerIt sells physics-based simulation software that lets drug researchers test molecules on computers before making them in the lab, reducing the need for wet-lab trial and error., Cadence Design SystemsIt is the other major provider of chip-design software and is expanding its simulation-first approach into drug discovery and systems design across industries., SynopsysIt provides the design software without which modern chips cannot be designed, and semiconductor design activity drives a growing share of new discovery attempts., CertaraIt provides biosimulation software that models how drugs behave in living systems, allowing companies and regulators to replace some human and animal testing with computational predictions.19%
- These companies provide the tools and platforms that let researchers generate, sequence, synthesize or engineer biological material at increasing speed and scale. · IlluminaIt makes the machines that sequence DNA, the foundational data layer for biological discovery, and gets paid per run across a large installed base of instruments., Twist BioscienceIt synthesizes DNA to order on silicon chips, enabling researchers to start biology engineering projects with inexpensive synthetic genes rather than natural extraction., 10x GenomicsIt sells tools that let researchers study biology at the single-cell level, a resolution of detail increasingly demanded by modern discovery work., Ginkgo BioworksIt operates a platform for engineering organisms and gets paid as companies outsource their biology research and development work rather than building internal laboratories., Pacific BiosciencesIt reads long stretches of DNA accurately, capturing genetic information that short-read sequencing cannot, and benefits as research budgets shift toward more complete sequencing methods.16%
- These companies make the test, measurement and sensing equipment that engineers and scientists use to develop new electronics, materials, and physical systems. · Keysight TechnologiesIt makes the test and measurement instruments that engineers use to develop new electronics, wireless systems and quantum hardware., Teledyne TechnologiesIt makes sensors, cameras and instruments that enable scientists and engineers to measure and visualize phenomena across applications from oceanography to space., FortiveIt provides precision instruments and workflow software that industrial and healthcare operations depend on for measurement and quality control in increasingly data-driven environments.13%
- These companies automate the handling, testing and movement of samples and chips, turning rising experiment volumes into growing revenue streams. · AzentaIt stores, moves and manages the biological samples that research generates through automated systems, so rising experiment volumes drive growth in sample handling., TeradyneIt tests chips before they ship to customers and sells collaborative robots that automate laboratory and factory work, benefiting from both rising chip production and automation adoption.9%
- Cash9%