SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Gorilla and King Portfolio Candidates

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: StockHawk who wrote (39357)2/16/2001 10:50:32 AM
From: hueyone  Read Replies (1) of 54805
 
Saying "stocks go up in the long run, especially gorillas--so therefore I will buy this gorilla at any price" is probably a better investment model than many---because you eliminate a certain amount of risk by investing in a gorilla instead of a company that has a greater risk of failing. But imho, this model can be improved a couple of ways. One way is to add some valuation criteria, similar to Pirah Niman's, Malcolm Bersohn's or other valuation criteria you prefer, and then hold off purchases until your Gorilla meets the valuation criteria in your model. A second way to improve the basic model, as Tom Chwojko-Frank pointed out, is to dollar cost average in to your Gorilla over an extended period of time---thus removing the market risk of buying at a near-term top. Theoretically, employing either of these "enhanced" models should increase your returns over time when compared to the basic "buy a gorilla at any time" model. (IMHO)

Best, Huey
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext