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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (8058)	7/7/2001 9:23:31 AM
From: Hank	Respond to of 10293

Well, I guess we needed to better define what we meant by biotech and pharma. In the context I was using it, I was using the terms biotech and pharma synonymously because my comments were specifically directed at small biotechs that focus on drug discovery. Sure, you can make money playing the small guys if you want to buy a bunch of them and hope at least one hits it big. In that scenario, one stock may go up 10 fold while others drop by 50% or more. That strategy requires that when one does go up, it has to go WAY UP in order to offset the ones that don't. In my strategy, I buy the big companies that invest in the little ones. The companies all turn a profit, pay dividends, and always go up over the long haul, so I always win and never have to worry. It's a matter of risk tolerance on my part. I'm a scientist who has worked in the pharmaceutical industry for almost 15 years and I don't feel comfortable making judgements about the viability of many of the smaller companies out there. Perhaps some do but I doubt many have the expertise to make an informed decision. Those that don't run the risk of getting burned badly. But then, nobody ever said investors were all smart. Just look at what's happened within the last year.