Kingsmill's Investment Miscellanea - Friday May 5th, 2023

May 05, 2023 | Joshua Kingsmill


Some of you may be aware, that I’m training to run in the New York Marathon, this November. Getting prepared for a Marathon has many similarities to managing clients' wealth. Avril and I have been conducting planning with many of our clients. Just as its not advisable to wake up one day and run a Marathon, we can’t wake up one day and proclaim: “OK, my finances are in order”. I’m following a plan in order to get fit enough to be able to run this Marathon. Together, we will work on your plans, so you can all achieve your financial goals.


One of the nice benefits of starting to run more, is that I can eat without worry. Again, tying it back to planning: less to worry about if we have a good plan.


As I’ve been increasing my running, there have been some great benefits, one of which has been weight loss. It’s been interesting, in the last while, there have been many articles about anti-obesity drugs, many of which have gone “viral” thanks to Hollywood and Elon Musk. The allure of being able to take a pill to lose weight is great, and certainly a lot easier than running a lot. While it may be far too early to assess that this new group of drugs is the elixir for obesity, there is no doubt that it is a space that has ample runway for growth with an estimated market size of $34 billion by 2031 from just $3 billion today.



"Globesity" is one of today’s most visible but perhaps most neglected public health problems worldwide. In the U.S. alone, more than 70% of American adults are considered overweight or obese. Some research suggests that over half of the world’s population will be overweight or obese by 2035. As this trend persists, the myriad of health issues that accompany this condition, that many in the medical community consider a disease, will compound. Subsequently, costs to the healthcare system of obesity-related health issues – already over $150 billion in the U.S. – will surely increase in tandem. From an investment perspective, as insurers begin to develop a better understanding of the “pharmacoeconomics” of obesity coverage alongside a reconciliation with the ever-rising burden of obesity-related health issues to healthcare systems, we can expect a loosening of coverage restrictions over time. As reimbursement becomes more widely available, I have no doubt the market will grow and become lucrative for drug companies developing the next generation of these obesity-related treatments.


Alas, there is no “pill” that will give us the financial health and freedom we need, just as it won’t help me with my training for the marathon. But with a disciplined investment approach, and following a plan with objectives, we can accomplish a lot.


This is a big weekend for Hats by the way. The coronation of King Charles III, means that the Brits, with their love of hats, will be looking regal and resplendent with their head-gear. FUN FACT: A hat maker is known as a Milliner. Perhaps my Kingsmill ancestors, mad hats for Kings?! A big day for hats in the U.S. as well. It’s the running of the Kentucky Derby at Churchill Downs in Kentucky, where over the top flashy hats will be in abundance. Linking the two events together, it’s a no-brainer that Kingsbarn will be the winner of this weekend’s Kentucky Derby.