Sometimes, it's good to see your heroes beaten. Hear me out... It's better than it sounds... Last week, I introduced my two daughters to my personal hero... A 91-year-old gentleman who embodies so many of the character traits that I strive to emulate, like honesty, integrity and kindness - the kind of qualities I'm instilling in my kids. I didn't introduce them to this man in person. Instead, we watched an hour-and-a-half-long documentary about him on HBO. My hero is Warren Buffett. I admire almost everything about him. In spite of my reverence, it isn't easy to convince both a 12- and 14-year-old to give up that much of their free time to watch a documentary about a 90-year-old investor. But I managed to do it, and I'm glad I did. My kids were captivated by the story of this happy old man. They agreed that Buffett's character is one to emulate. And they couldn't believe that he plans to donate most of his remaining $100 billion fortune to charity by the end of his life. Mission accomplished. But Even Buffett Can't Match Up Against This Sector... As an investor, I've long considered Warren Buffett's Berkshire Hathaway (NYSE: BRK-B) as my opportunity cost. For each of my investment ideas, I ask myself, "Is this really a better investment than Berkshire Hathaway?" I do it because Berkshire's massive balance sheet and Buffett's capital allocation, together, equate to an investment that carries minimal risk but offers significant reward over time. Berkshire is diversified across many industries, has a huge amount of cash and is run by a risk-averse CEO. It is extremely low-risk for one stock. But... it is still just one company. As investors, we need much more diversification than that. And unfortunately, the more we diversify to reduce risk, the lower our returns are likely to be in most sectors. But with each passing year, I'm learning that one corner of the market is unlike most sectors... Biotech is different. | 
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