Lucius,
Thanks for the clarification. To be perfectly clear, your initial post to which I responded questioned why the authors put potential gorillas in their portfolio. Right, wrong, or indifferent, the authors did explain their reasoning in the book. It's obvious from your more recent post that you do understand their thinking though you have reasons to disagree with it.
For the record, I really do think most of us are judging the portfolio's success (or lack of it) far too soon. Their investment thesis is a long-term prospect. Their book was only published a year ago.
As for identifying unknown, potential gorillas, I agree with you about Citrix. I'm a stockholder. According to the authors, my ownership of Citrix stock comes at greater risk than if I waited for the tornado to form. There's no question in my mind that they are right about that. Of course, I couldn't rationalize owning the stock if I didn't believe my potential for reward justifies the increased risk.
--Mike Buckley |
