MileHigh: no, I haven't read The Gorrila Game.
Thanks for the tip. I'm always looking for good investment books.
From your description, I'd put AMAT, KLAC, CSCO, INTC, MSFT in the gorilla catagory. In their space, they are unassailable, so they can maintain high margins indefinitely. And the rare times when investors are questioning these companies' dominance turn out to be exactly the right time to buy their stocks. AMAT will see a modest dip in earnings during this W-shaped prolonged cyclical downturn. Meanwhile, KLIC is losing money. Sort of like the INTC vs. AMD situation.
Gorilla status: Definitely not YHOO!, it's not in the same class. What is being said about Yahoo is the same things that I heard about Netscape in 1995. At the time, I asked myself, "So, how do they make money? And if they do make a lot of money, and have high margins, what's to stop someone else with cash and a lot of smart programmers from duplicating it? Where's the franchise?"
I predict Yahoo! will have the same parabolic trajectory as Netscape. |
