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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (3346)	7/1/1999 1:14:00 PM
From: Jean M. Gauthier	Respond to of 54805

Thanks Mike... Very nice post... I will Watch & wait, but not buy now take care Jean

To: Mike Buckley who wrote (3346)	7/1/1999 2:40:00 PM
From: gdichaz	Read Replies (2) \| Respond to of 54805

Mike: Some time ago you took at brief look at my "Significant Other" SFE which is the smallest of my trioka One Gorilla QCOM, One King UNPH. and One Significant Other SFE. BTW the weights are one half the Q, two thirds of the remaining half UNPH, and the remainder (one third of the remaining half) SFE. You asked about why SFE might be a better way to deal with the internuts than directly through individual stocks or CMGI. I tried to deal with the comparison to CMGI earlier. Here is a more comprehensive run down on possible SFE advantages when trying to participate in the internuts in some way which does not reach total absurdity. SFE To: elvisdoc (3158 ) From: michael r potter Wednesday, Jun 30 1999 11:51PM ET Reply # of 3177 elvisdoc, Sorry about being late in the reply. Posts subsequent to yours have done a good job answering some of your questions. About the only one I might address is incentives to buy SFE at present. Since valuation is truly open to debate, and regardless if SFE is fully valued, it doesn't address future performance. Certainly this decade, stocks that appear to be over-valued by many criteria have outperformed those with better valuation. Part of the reason is that the market is more efficiently pricing in future prospects and willing to pay up for companies deemed special, or dominant. [MSFT, CSCO, TLAB, INTC, AOL]. Even though others are entering the field where SFE competes, SFE has proven management with vision, a pretty unique business model, and access to resources both $capital and human capital. Also somewhat unique is there long standing demonstrated desire to help shareholders by rights, now IPOs and by being especially conscious of SFEs stock price and working their hardest to enhance it. They really do care about the little guy. Their goal is 30% IRR per year, they have been able to achieve that. I suspect that whether one pays $54, $64, or $74 now, in five years it won't make a lot of difference, just as 6 years ago, it made little difference whether one bought SFE at the low of $2 or the high of $3. Nothing is sure in the market obviously, but I think many investors would be well served by putting away a position in SFE, and not be tempted to take short term profits. Over the years, by participating in rights, IPOs, or the mutual fund and holding, the compounding will result in a substantial accumulation of wealth. The momentum of what SFE has going now, pales compared to even two or three years ago. The price is of course higher, but not out of line given the future potential. One of the tougher aspects in owning SFE is to wait out those sometime long periods where SFE is in a frustrating trading range after making a huge [and probably excessive run-up]. Eventually though, the fundamentals catch up, and then it goes on another tear making up for all that patience. Nothing wrong with trading the volatility, but only with shares not in the core long term holding part of ones portfolio. Short term trading is expensive, time consuming, and over time, tough [but not impossible] to beat what SFE will deliver with compounding and no trading tax bites through buy and hold. Mike Note: The Mike who wrote this post on SFE is no Mike Buckley, nobody is. But in following the SFE thread for the last couple of months, I have found him relatively thorough and thoughtful. Best as always, Cha2