Hi everybody! This is my first message in this board. Since I see the board is going through some growing pains, I feel that this is the least I can do to show my support to the board that has benefited me tremendously. Feelings can be hurt, but, like wounds, it could be heeled. To be emotional is only human. I remember I was drawn to the Web by an article in Money magazine about five years ago. It's a story about an early investment discussion Board. What touched me were the friendships developed among the board members. When I read some of the messages written to a dying member, tears filled up my eyes. At that moment, I decided I wanted to be online also. We are here for the common goal of pursuing successful investment, but the reward would be much sweeter if it includes something else more precious in life.
I read the Gorilla Game last year. My initial attitude towards the GG principle was that it's just one of many investment theories: the difficulty to apply makes it less useful. Fortunately, by following Mike Buckley's GG board at Motley Fool, which eventually merged into this board, I have witnessed and participated in the rise of new gorilla QCOM. The experience had prompted me to review my short investment history. Using the GG theory, I was able to explain most of my investment successes and failures. To reduce mistakes in the future, I need a consistent investment philosophy, and what is a better one than the GG theory. With the help of this board, we should all benefit from the GG philosophy.
Finally, some thoughts about "buying a basket of stocks" in the GG theory. It may seem unnecessary for the smarter members of this board. But I think it's one of safer ways for people like me to invest (another is diversification). I learned it in the hard way. About three years ago, after FDA approved laser eyesight correction equipment for sale in the US, I decided to invest in the company in this market. Two companies were the main players: VISX and Summit Technology (BEAM). They even had an agreement to share the laser procedure fee. Without concept of "buying the basket", I picked only BEAM because it's a local company to me, and it also had the "next generation" product on the pipeline. Well, BEAM clashed afterwards, and I sold it at a loss. In the meantime, VISX has grown steadily from split adjusted price of less than $10 to around $70 today. I never bought VISX because the BEAM investment failure has already caused me to decide not to invest in this field any more. Analyzing my mistake with the GG theory, I didn't follow the two rules: 1. buy a basket of potential gorillas; 2. sell the loser in the gorilla fight, and move the money into winner.
Wish everybody fun and fortune in chasing gorillas!
John Zhang
PS: I can promise to keep my future message shorter, but not funnier. Please excuse me for the sense of humor deficit, a chronic illness with no cure yet. Fortunately for the board, we already have some good comedians! |
