Simple fact, which Murphy unfortunatley understates:
If you invest in small or mid-cap biotech, you are likely to lose your shirt on some investments. Every venture capitalist in the valley knows it, as do virtually all the biotech funds. The only way to play this is with a well diversified portfolio, knowing full well that out of 10, 4-5 will probably fail, 1 will be a home run, 1-2 will do OK and the rest will just languish roughly forever.
If you can't do that, you probably shouldn't be in those kinds of stocks, and it doesn't matter if you follow Murphy's picks, McCamants picks, or anybody elses. A friend of mine is the biotech analyst at Robertson Stephens. His favorite phrase: "Biotech is a graveyard for most companies."
mg |
