I believe you're right if the goal is sustaining growth. However, if you're after massive growth, like I believe we can achieve with NWBO, just being concentrated in a few stocks that hit it big can give you the position you want where sustained growth is what you're after. Personally I now have mid six figures in my account. When the account reaches well into 7 figures I may put some into the sort of index funds you're suggesting, especially if I'm forced to move out of NWBO by a buyout. Otherwise my kids will inherit 7 figure accounts that they'll get a new tax basis for, and they'll get a lot of NWBO shares, probably more than anything else I own.
I think there are few stocks that come around in a lifetime that can make a tremendous difference, I believe NWBO could be one of them if they're not bought out. I actually thought IMGN could be another, until it was bought out. ABBV, who purchased it, may be a fine company, but the earnings growth I believe IMGN could have achieved would have taken the stock far higher, on a percentage basis, than ABBV will ever go.
To me, it's about percentage growth. I know many people who only purchase major companies stocks, if they see 10% or better annual growth they're happy, and they would never invest in a stock selling for under $5, at least not serious money. When we go from $.50 to $5 I'll have more growth than some of them will see in a lifetime, and frankly I believe $5 is just the beginning. Many of my friends tell me sell if you see $1, or $2. Why would I cell if I still believe NWBO is one of the best buys on the market. I don't care if it's $25, as long as I believe it's still a great stock to invest in, why sell any.
Certainly I've always said when we hit these sort of numbers I intend to generate some income, but doing it by writing out of the money covered calls each time I sense we've had a nice runup, and I believe we're due to retrench some before the next high. I have enough shares that selling say 200 calls for a couple dollars would buy a very nice vacation, and be a tiny fraction of my holding that are at risk. Do that a few times a year without ever costing a share of stock and you can travel first class much of the year and still pay the taxes on the gains. I'm at an age where I won't travel that much, but if I go, it will be first class all the way.
I've really not followed CNBC for years, so I'm really not familiar with the Analysts you're referring to, but I'll accept that some may do well. I used to like Jim McCamant's on biotech's, but he's been retired for many years. I could live a nice life with nothing from the market, so everything over that is icing on the cake.
Gary
