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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Thomas Mercer-Hursh who wrote (47854)10/12/2001 8:58:29 PM
From: Pirah Naman  Read Replies (1) of 54805
 
Which may be helpful, if you are solving the problem backwards. I.e., what rate of average growth does the current number represent and is it beyond the bound of reason. If it is beyond the bound, then fine, the question is answered.

True. And that would be a useful result - you could eliminate a "mistake." (Mistake = decision with a high probability of yielding an undesirable result.)

But, if it is within the bounds of reason, then one still hasn't assessed whether is is reasonable for this particular company.

True.

Your example boils down to this. A coarse effort at valuation has the potential to eliminate some - but not all - mistakes that might slip through when making no attempt at valuation.

I agree with that.

- Pirah
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