Letter to Uncle Charlie- part 1

Hi Uncle Charlie

I hope that this email finds you in good health.

As you know, I have recently graduated from university, and despite Mom and Dad's misgivings, I have managed to be gainfully employed for the past year. I am being paid peanuts by my employer (what's new?), barely enough to cover my rent and nothing much leftover for any drinks or holidays. Given the prices of Sydney properties, I think owning my own swanky pad in Surry Hills will be forever a distant receding dream.

In any case, I got paid a bonus this year so I have about $5000 of spare cash. As I have cancelled my romantic Paris trip with my girlfriend due to the recent sad events there, I won't be needing this cash in a hurry. I was thinking of putting it in a fixed deposit, but interest rates are so low at the moment. My Dad suggested putting it into superannuation, but forget about that! Like I won't get to touch the money for another 45 to 50 years till I turn 65 or 70. Seriously, another one of Dad's wacky ideas.

I was just talking to a friend the other day, and he suggested that I buy some shares. He told me to buy shares in some biotech company, the name of which I cannot recall at the moment. He said that it is high risk because they are not making money yet, but the science is tremendous, and if things go well, I can easily double or triple my money, maybe even 10 times if things go well.

As you know, I am no sucker. I know stuff about shares. I can only lose $5000 maximum, but if I win, I can win $10,000, maybe even $50,000. Sort of like heads I win, tails I don't lose much. I reckon in life, you got to be in it to win it. In any case, high risks equal high returns, and I am young, so I can afford to take this risk.

I was thinking that since you have told me you also dabble in shares that you might be interested in this share. I still cannot remember the name, but I will ask my friend if you are interested. Please do not forget to shout your dear nephew a drink if you win big on this.

Your faithful nephew,
Peter