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It's also extremely rare to hit a multibagger in biotech since breakthroughs come so infrequently (compared to say, tech/Salas like Zoom, mongo, mercado libre, etc), especially from smaller companies- and they often get bought out before being able to reach 10x bagger status.


Fuma102, I have avoided the biotech space for years, having bought some like 15 years ago. I started buying into them again, and your comment reminded me of one of the reasons I stopped buying them last time.

It seems we as individual investors buying biotech often take all the risk and little of the upside. I can't recall how many times I saw a company finally hit it, and start showing numbers, only to be bought out. Meanwhile if a drug is a failure the company is left for dead and individual investors are left holding the bag. It does not seem like a favorable risk/reward industry for that reason alone, not to mention most drugs simply fail to get approved, then those that do, there also seems only a small portion actually take off. So thanks for that reminder.

Right now my biotech stocks (not medical, strictly biotech) are: IOVA, ITCI, the 3 Gene Editing stocks plus BEAM, and TCDA. I did buy a little TCDA after all this bad news on the basis it could actually bring a product to market in the next few years. If they don't go into a financing death spiral, I take this as still a viable company trying to get a drug to market.

I am considering selling the gene editing stocks because they have gone up so much and are now 6% of my portfolio. I don't mind owning them as long as they are a small portion to the point I don't care if they go down again, since this is a multi-year-decade investment. So what they do between now and then is largely irrelevant. But they have gone up significantly that it sort of doesn't make sense when you compare them to other biotech companies a lot closer to the goal line. And 6% of your portfolio in one experiment a long way off starts to sound like a significant number.
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