Gorilla and King Portfolio Candidates Message Board

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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Mike Buckley who wrote (11497)	11/30/1999 4:11:00 PM
From: JRH	Read Replies (1) of 54805

Mike -- great post. It embodies the some of the questions I have regarding this investment philosophy. the market has tended to undervalue gorillas by a wide margin in the past Interesting comment. How does one determine that though? Have these "gorillas" returned more than the hurdle rate for their owners and only now have they approached "fair value?" I think the hard part is ascertaining whether these companies are fairly valued here -- which as you state later, is virtually impossible quantitatively. One thing you can say is: where do the profits need to be to support this price with a reasonable discount rate? Is it plausible? What needs to occur for this to happen (i.e. a continuation in a high stock price to maintain acquisition strategy, new revenue streams, etc.) Ryan (JRH's roommate)

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