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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Joshua Corbin who wrote (35355)11/27/2000 5:58:04 AM
From: Mike Buckley  Read Replies (1) of 54805
 
The corollary to this is that any strategy for beating the market will be eventually arbitraged -- or gets priced into the equities involved.

I've never agreed with that idea. In my mind, the single most important strategy to beat the market is to buy great companies at relatively fair prices and hold them for decades. That strategy grounded in keeping commission costs low, deferring taxes, and compounding returns in my mind has never been arbitraged nor properly priced for long periods of time.

To what extent is the Gorilla Game already reflected in particular G&K-type stocks?

Noting my bias of above, I think it's been very little. Due to the current market correction, there will be a lot of people who got burned over a short period of time who will never play the game again. That's the nature of corrections. They don't just alter stock prices, they also alter many investors' way of looking at things.

--Mike Buckley
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