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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Jurgis Bekepuris who wrote (53738)3/22/2003 10:55:23 PM
From: Stock Farmer  Read Replies (2) of 54805
 
Hi Jurgis, Sorry, but I can't do better. At least you try, and there is merit in that. More than can be said about others.

As far as using whether or not something is a Gorilla to filter out investment opportunities, e.g. those which are "under the shadow of Gorilla"... I wonder about that as an investment strategy.

Seems to me that price is the single determinant of a good investment. In other words, the difference between what one's investment is worth at sale versus what it cost at purchase. Plus any dividends in between. Everything else is irrelevant in the end.

Gorillas included.

We can profit from investing in Gorillas and we can fail to profit. That much is evident. What about screens based on price/value determinants, rather than on inputs to determinants or derivative characteristics? What if identifiable Gorillas go on sale less frequently than companies in their shadow? What if Gorillas become overvalued once they are identifiable as such?

If I have $1,000 to invest it seems to me that if a company is a Gorilla but priced at $0.98/long-term dollar that it would be a worse investment than some Gorilla Shadowed company available for $0.50/long-term dollar. Yes?

Food for thought, rather than a foregone conclusion.

John
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