Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: DlphcOracl who wrote (3813)	7/15/1999 4:07:00 PM
From: LindyBill	Read Replies (1) \| Respond to of 54805

Sorry, but the risk-reward ratio is too high. I agree that yours is the dominant viewpoint, and, for most stocks, I would agree with you. On Q, I think the risk is so low and the reward so great that it is worth it. I doubt if I will ever do it on any other stock, and I doubt if I will see the likes of the Q opportunity again. We all know the old saw, "Time will Tell!"

To: DlphcOracl who wrote (3813)	7/15/1999 7:58:00 PM
From: Jean M. Gauthier	Respond to of 54805

Agreed on all points. LindyBill, If CDMA does not win the 3G standards, and the world standards fracture, your losses would be catastrophic. Gorilla investing should mean you spread it around, along all gorillas. I did not think that "the gorilla game" book advocated what you are doing. The risk, my friend, the risk. Maybe 20 % in it, with the other 80% divided among Cisco , MSFT , Intel and who knows. You still get the "oommpph" but if something happens, you do not lose your shirt JMHO take care Good luck Jean

To: DlphcOracl who wrote (3813)	7/15/1999 9:35:00 PM
From: carl a. mehr	Read Replies (1) \| Respond to of 54805

All, It's a big gamble to have everything in one stock. I played that way with a sure winner five years ago, Intel, and have made out ok. Many or perhaps most of us high-tech gamblers like to expand our stock portfolio 100% by the use of 50/50 ratio of equity to margin credit. Margin credit for a concentrated stock portfolio becomes more difficult to obtain (or totally non-obtainable) depending on the securities involved and the brokerage firm. If margin is obtained, margin calls may come at a much higher equity ratio, than would normally be the case for a diversified portfolio. For anyone using margin, I would highly recommend that a single security position is kept below 33% of the total long security position. ( My holdings in Intel are not down to that level, but moving in that direction). After reaching a very depressed portfolio value on August 31, 1998, I am happy to look at a portfolio gain since that time of 312%. The only figures that matters are the year to year gains. YTD stands at 51%. Proper use of margin can work wonders! Compared to the big winners out there playing AOL and the like, I am probably doing rather poorly. A quality diversified portfolio makes you sleep well.. humble carl