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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: ratan lal who wrote (30407)8/24/2000 3:08:56 PM
From: Thomas Mercer-Hursh   of 54805
 
However, in terms of investment, it may not be a bad idea to see which would be a better or less risky investment.

Well, what about the Gorilla? Isn't this the perfect example of where the numbers don't tell the real story?

But, leaving out this notable exception, I think the key point is that one needs to understand what is behind the numbers and what this means in the context of the business. Yes, a company that builds something has capital requirements a "soft" company doesn't have, but this may actually be the safer investment if the market for the thing being built is strong and predictable, but the market for the "soft" company's product is weak and unpredictable.
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