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Technology Stocks : Gorilla Game

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To: RavBruce who wrote (371)3/17/1999 12:42:00 AM
From: Seeker of Truth   of 387
 
Tiny companies A,B and C have something new to offer, let's say.
But they lack the multitude of other expertises which are
required to make what the something new that they have become
really valuable. A company like Merck has researchers who
understand A,B, and C. Merck licenses their technology, or
buys the companies, mixes A,B and C technologies with Merck's
own know how, comes out with something still better. I guess
my main point is that so many different technologies are
required before there is a useful drug, that only a Merck or
some such company can really profit. My bet is that ten quanta
of Merck stock will outperform ten little biotech companies.
Whoever comes up with something new must surrender a huge
portion of its value to a gorilla.
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