Mining Sector Ideas

[gfp927z]

Ombow, >> biotech <<

I figure the problem with biotech is that it's so advanced and specialized, none of us can understand it enough to base an informed decision on. Other areas of science (LWLG) are similar -- just too advanced and complex to evaluate the winners and losers, unless you work in the field directly and have a PhD, and even then it would be difficult.

Warren Buffett says us mere mortals should stay in our 'circle of competency' when it comes to investing. He recommends we use an index fund (S+P 500) for the bulk of our stock allocation. That's what I do, and then have small positions in a lot of companies that have proven track records (as evidenced by their nice long term charts). I also have some 'turnarounds' - nice long term stocks that have hit some headwinds but should bounce back. Beyond that are some tiny positions in somewhat riskier stocks to keep things interesting, but these are minute amounts and for fun / general interest. Anyway, so far it seems like a pretty good balance, and the stock allocation is only 28% of the portfolio, so enough to participate, but not to require daily Tagamet :o)

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