I've read the book, and I think it's an excellent way to pick tech stocks. But it really doesn't address the question of valuation. In 1999-2000, most people who used the "Gorilla Investing" ideas, thought you couldn't pay too much for a good company's stock. Well, the last 12 months have proven that wrong, and a lot of people got seriously hurt. I may end this year with a portfolio of mostly Gorillas, but I'll buy them at a PEG of 1, maybe 1.5 at most, or I won't buy them at all.
My buy-list, and target prices:
AMAT 35
QCOM (bought last year, average cost 67, too high obviously)
CSCO (whenever support forms below 25)
EMC 35
MSFT (bought last year at 61, too high and too early)
TXN 28 (not a Gorilla, but I don't see any Gorilla in chips, and I need something to replace the INTC I sold in 1/00) |
