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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: mauser96 who wrote (2393)6/1/1999 9:53:00 PM
From: Mike Buckley  Read Replies (1) of 54805
 
Gorilla stocks aren't 100% immune from big price drops.

I appreciate what everyone has to say about this subject, but when it comes to laying down my own cash I'm compelled to weigh in slightly more on the side of Lucius. I've seen HUGE drops of prices of gorillas. Though most have rebounded, some haven't as in the case of SAP that Lucius mentioned. Another example is that an investiment in Intel on November 12, 1997, and held until today would have underperformed an investment in an S&P 500 index fund by 15%. It's an anecdotal example at best, but it's Intel and it's an 18-month period.

Taking a look at Microsoft, Intel and Cisco, I'm only familiar with their ability to rebound in the last ten years when the market of large-cap stocks has been exceptionally bullish from a historical perspective. There's no guarantee that the gorillas and kings won't take a LOT longer to recover when and if the market loses its infatuation with the large caps.

--Mike Buckley

P. S. Now if that isn't a set-up for Lindy, nuttin' is. :)
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