>> I feel like I missed the Q opportunity
Nonsense, Len, you haven't missed anything. Qualcomm has just had its first split, has a meager 150M share float, and a market cap of under 20B. One of the underlying concepts of the GG is that companies who have had a discontinuous innovation adopted in a hypergrowth sector will have an extremely long period of prosperity. This applies in spades to qcom, since they have a stranglehold on an enabling technology, and both the costs of switching and the legislative barriers to doing so are enormous. I've bought qcom 5 times over the past 3 months (at 70 3/8, 84 3/4, 116 3/8, 111 1/4, and 100 5/8) and will buy more next week. If they truly are a Gorilla, today's "high price" will seem like a steal a year from now.
I learned this lesson with Microsoft before I knew what a Gorilla was. I watched Mr. Softee run for 6 months waiting for the dip that never came. I was intimidated by its high p/e ratio and recent appreciation. I finally made my first msft purchase (of several) at a then record high 101/sh. in January '97; at 85, after two 2:1 splits, thats a 233% return in under 29 months.
The beauty of the GG is that you don't have to sort out the Shiny Pebbles from the Royalty, and you don't have to be a market timer. You can wait until a Gorilla or King has already emerged, buy in "late", and still make incredible returns - with minimal downside risk compared to any other type of investment.
The above explains my apparent indifference to small and micro cap issues. I've been burned many times on Story Stocks, Shiny Pebbles, Princes, and Chimps, but have always had great returns on my Gorilla and King investments.
Frank |
