Woodford's calling his biotech new fund Patient Capital.
Patience means a 3-5 year time horizon might make sense for him.
I think he's looking at more than a 3x to 5x gain though.
In my opinion that the biotech sector is going to blow up in the next five years and be comparable to Internet stock boom did in the late 1990's.
The full force might not come within the next 5 but you'll see the clear beginning of it.
NWBO is just one drop in a tsunami of new world changing companies.
Once people realize what is happening there, you could get a similar effect to the 1990's where everyone is buying biotech and even stocks in general at ridiculous P/E ratios.
When that happens, for better or worse fundamentals alone won't be dictating NWBO's share price.
Once NWBO gets up to that ridiculous P/E ratio, don't get greedy, but take what you have won and live your life.
Sell out most of your NWBO position in a tax efficient way. Keep a few shares for nostalgia's sake if you like. It will make it easier to part with the rest.
Then prepare for the biotech bubble to burst (because it will) by creating a diversified portfolio of dividend paying stocks and holding a lot of cash for the period after the crash.
The dividend paying stock let you stay in the market with less risk because few if any will go to zero and will pay you to wait for them to come back by those dividends (even if the dividend gets cut its okay).
I know this from personal experience from the crash of 2008. I had a belly of iron and sold nothing and kept buying in fact and was rewarded for it across the board.
The cash will help because the crash happens you'll have several months to bottom trawl and scoop up all of the good value stocks that fell out of people's pockets as panicked and ran away from the market. Cash is king in that environment. You will make a fortune in a few years just by buying low, holding for several years and then selling high.
I also know this because even with a little cash I just kept buying stocks through the darkest days of 2008 2009 when they were being sold for almost nothing.
But remember when you're rich and managed to hold onto that wealth during and well after the biotech bubble that it all started with your willingness to invest in little NWBO when most people weren't paying attention.
