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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Uncle Frank who wrote ()3/16/2000 1:17:00 PM
From: substancep  Read Replies (4) of 54805
 
Disclosure: We are new to the GG. We have read the text once and are now studying it in detail. That said, we would like to reiterate who the GG thinks we are and challenge the experts of this discussion group to walk in our shoes!

pg xxi: "Finally, and perhaps most importantly, the YOU that we have uppermost in our minds is a private investor who is turning to the stock market to provide for your family's future. Far from being independently wealthy, we expect you to have modest capital at the outset and to be deeply concerned about not losing it. As a result, we are going to define an investment strategy that is, at its heart, inherently conservative. That is to our mind the real purpose of the gorilla game - to help private investors participate in the rewards of high-tech stock gains while standing clear of the market's unnerving volatility. To the degree that this notion speaks to your deepest concerns and needs, you are directly in our sights."

We are not naive. We know there is no guaranteed ride up. However, EVERY G&K company on this board's lists except MSFT and INTC have P/E ratios greater than or equal to 100. It is not so easy for us to dismiss the WSJ article Tecinvestor posted. Imagine, if you will, that you had not been fortunate enough to participate in some of these moon shots. Imagine that you wanted to begin growing your nest egg through high-tech investments but had no previous holdings in these companies. How would you begin and how would you really feel about that new beginning? Would you actually wait for the tornado/bowling alley or would you adopt a more speculative approach thereby increasing your risk? Would you feel confident that your initial investments with P/E ratio's >100 were relatively secure? Would you feel that your expectations of large returns from these companies were reasonable?

Thank you!

S&P
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