Yeah, lots of companies have higher returns than the Gorillas, but over what time span and how safely? I made a lot of money on AOL and DELL, but I knew they were not as safe. And I ran like hell when I thought they were stumbling.
We could certainly argue that the returns on the below companies - regardless of what they are (royalty, Godzilla or Gorilla) - will continue for all of them. Knowing the degree of risk is, of course, important as an investor. One could make a case that safety is never a given. We all have to choose our degree of risk and, as Lindy did, when to run like hell. Outside of Dell, I used all the start dates of when these companies began trading on the exchanges.
The returns on AOL and Dell read like this:
Godzilla AOL: 1992 to present - over 45,000 percent
Prince DELL: 1991 to present - around 40,000 percent
(I could have gone back to when Dell began trading in 1989, but the return is the same whether one begins in 89 or 91. I used 91 to bring it more in line with Cisco and AOL's lifespan.)
The returns on Gorillas, Cisco, Microsoft and Intel read like this:
Cisco: 1991 to present - over 42,000 percent
Microsoft: 1986 to present - over 41,000 percent
Intel: 1986 to present - over 5,500 percent
The returns on other Gorilla type stocks such as Gemstar, Qualcomm, Siebel and i2 read like this:
i2: 1996 to present - 150 percent
Siebel: 1998 to present - over 175 percent
Qualcomm: 1996 to present - about 1000 percent
Gemstar: 1996 to present - about 1000 percent
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