Replies to post #1715 on Biotech Values

[DewDiligence]

That looks like a well-thought-out list.

Diversification is good up to a point. But, mathematically, it’s inevitable that the more you diversify, the more your performance will mirror that of a passive index fund. If someone owns, say, 20 small-cap biotech stocks in roughly equal allotments, the portfolio’s performance will likely be within a percent or two of a small-cap biotech index.

As a rule, I don’t diversify as much as most investors. I look for a few companies where I have the confidence to take a large position.

I currently own no cancer companies, and I don’t consider GENR a cancer company.