It all started in January 1848 when James Marshall, a carpenter working at a mill in Northern California, made a discovery that would change the course of U.S. history – two gold nuggets.
In the years that followed, nearly 300,000 would-be millionaires (known as ‘”forty-niners”) made the arduous trek to Sutter’s Mill in hopes of striking it rich.
But of those 300,000 forty-niners who made the journey, very few actually found long-term wealth mining gold.
It was business-savvy individuals like Samuel Brannan who made the real fortune the California Gold Rush had to offer.
You see, instead of rolling the dice in hopes of finding gold, Brannan built a business that catered to the hundreds of thousands of hopeful miners.
After news broke of the discovery of gold at Sutter’s Mill, Brannan purchased all the pickaxes, pans and prospecting gear he could find and stashed it away in a shed where he sold it to hopeful prospectors.
Before long, Brannan was the first millionaire west of the Mississippi River.
Why am I giving you this history lesson?
Well, the fact is that same “pick-and-shovel” strategy Brannan made his millions with can be applied to the investing realm, too.
We’ve even got our own modern-day gold rush underway to apply it to.
Only this time it’s in biotech.
But just like the California Gold Rush, it’s not the pharma and biotech “miners” who have the surest and smoothest path wealth.
It’s the pick-and-shovel players that offer the biggest payout.