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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Stock Farmer who wrote (53753)3/23/2003 2:54:46 PM
From: Thomas Mercer-Hursh  Read Replies (1) of 54805
 
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.

The *hindsight* value of an investment is the return one earned. Unfortunately, one can't make investment decisions with the benefit of hindsight. Thus, one resorts to various ways of estimating how well a company is likely to do in the future, both absolutely and with respect to its competition, believing that this will be a major determinant of price *over the long run*. Gorilla, King, Chimp, Prince, none of the above are ways we have at getting at that estimate.
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