Michael,
I read Grove's _Paranoid_ book a while ago, and enjoyed it. Always on the lookout for "strategic inflection points," although I wonder if you can determine a priori who's gonna come out of one on top.
If you're interested in tech stocks I recommend _The Gorilla Game_. I recently started a small position in ITWO, the leading vendor in databases for supply chain management. These things look expensive, but when they're growing revenues at 100% a year (and projected to keep growing for many years) it doesn't take them long to grow into their shoes. And with the added benefits of proprietary standards, the early leader can effectively lock out competition and gain near monopolistic pricing power. This is essentially the hunt for the next MSFT, INTC, CSCO, ORCL, AMAT, etc.
Regarding RDHS: I sold my position there following last quarter's earnings, but am still following it and fully expect to reenter the stock should it's price slide much further. This is a great example of a Peter Lynch "cookie cutter" company, and they seem to be able to execute as well or better than anyone else in the business. I'm interested to see what happens with margins next quarter. They slipped last quarter, and I wonder if their performance is beginning to gravitate more to the median.
Shane |
