Fools were out and about this week in an investing world jampacked with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
An Inside Look at Biotech Investing
CAPS All-Star zzlangerhans talked with the Fool's John Keeling about investing in "baby biotechs," a label under which he lumps "all the small unprofitable drug developers." He continues: "For investing purposes, the small size and developmental nature of the company matters more to me than the composition of the pipeline."
Here are words of encouragement from zzlangerhans:
I do draw on my background in molecular biology and medicine to a certain degree, but trading these stocks is really a discipline unto itself. You don't need to be a doctor or a scientist to make money trading biotech. The most valuable skills are paying attention to detail and being able to understand mass psychology.
And here's a peek at his thoughts on using the run-up strategy he calls the "Bottle Imp," in which investors "[i]dentify a stock in depression with a major catalyst expected within six months to a year." His advice:
Many of these stocks will rebound dramatically at some future point in advance of the catalyst. If you are successful, don't get greedy. Sell with a reasonable gain and whatever you do don't play through the catalyst.
zzlangerhans says his strongest Bottle Imp candidate right now is Discovery Laboratories
See the article to read more about how to invest in biotech stocks.
The Best Buys for Your Roth IRA
You still have a couple of months to max out your 2010 Roth IRA contribution. If you don't have a Roth, now is a good time to open one and start reaping the tax advantages that might work better for you in the long run than a traditional IRA, which lets you deduct your contributions and defer paying taxes until you withdraw the money in retirement.
With a Roth, you put in after-tax money, but "you'll never pay a penny of tax on the investment gains you earned along the way," wrote Fool editor and writer Dan Caplinger. "[T]he best way to make the most of your Roth is to buy investments that will produce the greatest returns."
Dan highlighted Intuitive Surgical
Read the article to find out more about maximizing your Roth retirement account.
Tenure Tyrants in Corporate America
Fool writer Alyce Lomax dug into data on how shareholders have been voting on executive pay, and she found several examples indicating more than just token unhappiness with the way business has been done. For instance, 46.1% of Cardinal Health
Check out the article to see the rest of Alyce's examples and to read about the "entrenchment costs" that can dwarf the direct monetary cost when a CEO gets a pink slip.
See a stock in this story you'd like to follow? Add it to My Watchlist, which will find all of our Foolish analysis on it.
Fool online editor Kris Eddy owns no shares of any stocks mentioned in this article.
Intuitive Surgical is a Motley Fool Rule Breakers pick. The Fool owns shares of Coach, which is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.