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Strategies & Market Trends : The Art of Investing
PICK 44.61-2.7%Nov 4 4:00 PM EST

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To: sixty2nds who wrote (9527)1/8/2025 5:53:18 PM
From: Sun Tzu  Read Replies (3) of 10521
 
6 to 10 is not enough diversification.
I have nearly 150 stocks in my portfolio and the largest group is the biotech stocks.
On any given day I can show you double digit swings in at least one of them.
For example, today VIR was up 56% and CMPX was up 25%.
Also today, MNMD, JANX, AVXL were down about 12%.

There is a knack to investing in biotech stocks. You have to be comfortable with volatility. But you also need to be able able to separate the underlying trend and potential within all that noise. I wouldn't call it the most difficult sector to invest in. But it is very different than other investments because it is very speculative. The only thing I can think of that is more speculative (and I do not engage in that at all) are the mining and exploration penny stocks.
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