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Arbitrage: Hard to Find in Finance, and Easy to Find in Healthcare?

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Owen Scott Muir, M.D, DFAACAP's avatar
Owen Scott Muir, M.D, DFAACAP
Mar 18, 2023
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Arbitrage is a popular term in finance circles. It means you can buy one thing and then immediately sell it to somebody else for more than you bought it. It's the perfect product because it is essentially a glitch in the matrix. The literal dictionary definition is as follows:

“the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms to take advantage of differing prices for the same asset.”

Finding these opportunities in markets is relatively rare because everyone is looking.

For reasons that escaped me, very similar opportunities exist in healthcare. Most are instant like you can get out of a literal arbitrage opportunity in a capital market. So there's some us to find and execute on these healthcare discrepancies.

Essentially, they're all over the place.

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