When it comes to biotech stocks, many investors are like the lion in The Wizard of Oz -- they're afraid.
Part of the reason for this fear is a perception that biotech stocks are all highly volatile and super-risky. These concerns are true for a lot of small biotech stocks. However, there are methods that allow investing in biotechs that help lower (although not eliminate) risks.
What do the SPDR S&P Biotech ETF (NYSEMKT:XBI), Gilead Sciences (NASDAQ:GILD), Johnson & Johnson (NYSE:JNJ), and MannKind (NASDAQ:56400P706) have in common? They all can provide examples of ways that the goal of investing in biotech stocks without fear and trembling can be achieved.
Find out from the following slideshow how these investment alternatives reveal four ways to make money on biotech stocks. You'll see how investing in biotech doesn't have to be too scary after all.
Keith Speights owns shares of Gilead Sciences. The Motley Fool recommends Gilead Sciences and Johnson & Johnson. The Motley Fool owns shares of Gilead Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.