Allocate 25%: Addendum

I may have left the wrong impression about hobby stocks. I expect them to outperform.

I had my doctor’s portfolio in mind. He wants to invest in biotech and other advanced medical companies. Judging from medical investment newsletters, biotech and advanced medical companies are likely to be highly volatile, often scoring spectacular gains but sometimes incurring substantial losses. If he can stick with this, I believe that he will do very well. It should take about ten years. The key is handling the emotional toll of a high stakes roller coaster.

The rest of his portfolio offers the necessary stability.

Have fun.

John Walter Russell
April 12, 2006