That's right! A $10,000 investment in 2010 growing to $650,000 by 2019 end.
Now keep in mind that the newsletter was available for subscription from mid-2015, and the prior performance is a back-tested track record based on hypothetical trades. Generally speaking, biotech stocks have more variable returns and higher risk than the broader market indexes. Furthermore, historical results do not guarantee future performance.
Nonetheless, the performance gap is substantial, compelling & transformational.
A $10,000 investment in 2010 in the biotech index would have also grown,
but to just over $45,000.
The numbers get quite staggering if one calculates the model portfolio performance from 2003.
What is equally noteworthy is the consistency with which the Prudent Biotech portfolio has outperformed each year in the last decade.
During the brutal bear market of 2008-09, when the S&P 500 plunged 55% in a matter of months, the model portfolio did not suffer a material decline. The reason was straightforward. The models recognized the market risk to be abnormally elevated and found a scarcity of investing ideas with a higher probability of success. Consequently, the Prudent Biotech portfolio simply exited to the safety of cash. The ability to exit the market is relatively easier for individual investors, compared to institutional investors, and we should leverage that into an advantage during times of acute market stress or a downward trend.