To clarify <smile> at a more basic level for those not familiar with alchemy. You need the extract skill at level 4 to create permanent potions. There is no level 5 skill any more (thank you Kiya for telling me that before) and level 1-3 skills just create different levels of temporary potions. The combine skill merely allows potions to be combined to make new potions.
You don't need all the alchemy plants - only those that are needed for the attribute you want the potion for. So if you want to increase vitality you need only red and blue. Do a search for the combinations, if you need them.