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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (65231)	7/25/1999 12:27:00 PM
From: Thomas M.	Respond to of 132070

"Diworsification", as Peter Lynch called it. Tom

To: Joan Osland Graffius who wrote (65231)	7/25/1999 3:49:00 PM
From: Fred Fahmy	Read Replies (1) \| Respond to of 132070

Joan, There is diversification and there is diversification. Not all is the same. The key, IMO, is to stay focused on your core business and expand only into peripheral/complementary areas which are related to and/or can help grow your core business. <They were getting into businesses they knew nothing...> Definitely an easy trap to fall into. <I agree that some managements are capable of transiting a company from one business area to another> Intel's transition from a memory maker to a CPU maker is a good success example...but this is not the kind of expansion/change that I was talking about. In the case of box makers, it makes sense for them to get into business that can be used to entice people to buy PC's. For many new users getting on the internet is the incentive to get a PC. I agree with much of what you have said, I'm just not sure it applies to Gateway...at least not with respect to their current ISP efforts. Regards, FF