I've broken one of my own rules. While acquiring other stocks, I purchased Abbott Labs, Pfizer and Merck, who are all in a similar pharmaceutical/health products market. Although I think all these companies are good purchases, and will work out well at the current price points, I should avoid this in the future. This sector is obviously lagging as I've sold all my other holding during the recent market surge, but these have not yet hit my sales price and I'm currently left with only these three holdings. I'm a bit exposed in case this sector would take a dive. But I didn't even realize it when I was making purchases because of the other stocks I was buying.
Another lesson learned. I should consider pharmaceuticals in the same way that I consider banking, energy and utility stocks in the future.
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