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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Mike Buckley who wrote (1467)4/24/1999 7:52:00 PM
From: Mike Buckley   of 54805
 
"Microsoft has a market cap greater than Canada's GDP," Killen says. "It will be very difficult for that stock to double in the next 10 years.

That's a quote from an article espousing the notion that value investing is coming back to life and that investors will be taking their money out of the really large-cap stocks.

I gotta tell you that I have a hard time justifying the market's love affair with the large-cap stocks, at least with the magnitude that the love is shown. But to say that it will be difficult for Softie's stock to double in the next ten years is lunacy without showing support of that statement. Does this guy not realize that it only has to grow at a 7.2% annual rate for it to double in the next ten years? Does he really think Microsoft's performance in the next ten years will be lower than the historical return of the stock market? Doesn't he realize Microsoft could probably BUY Canada with their stock and tell the U.S. DOJ to shove it?

Okay, so everything the guy says isn't lunacy. You might want to see the article at cbs.marketwatch.com

--Mike Buckley

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