Gorilla and King Portfolio Candidates Message Board

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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: shamsaee who wrote (20404)	3/17/2000 8:58:00 AM
From: DownSouth	Read Replies (1) of 54805

Shamsee, you say you are convinced that "investing in great companies needs to be coupled with knowing when to take some money off the table." I could NOT disagree more. When I get this feeling I must realize that I am using hindsight. It is easy to see what you should have done in retrospect. It is difficult to see what you should do in the future. The whole point of Gorilla investing is to avoid the need for selling decisions based on market timing. We sell when 1) the fundamentals of the company or its market change to the company's disadvantage (discontinuous innovation, slow growth). 2) we find another Gorilla in another market that deserves more of our money and we have not cash. 3) we need cash to pay the rent. Even points 2 and 3 can be avoided by using "Stock Replacement Therapy" with LEAPS calls, replacing the stock with LEAPS and raising cash to buy stock or spend. If I was "taking money off the table" my stellar returns in CSCO, MSFT, INTC, and NTAP would have been compromised, I would be 0% QCOM and I would be working for someone else for a living.

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