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

To: LindyBill who wrote (8909)	10/26/1999 1:51:00 PM
From: tekboy	Respond to of 54805

"What we advocate is really a safe, conservative approach, but it does not look like it to newbys. The first thing they do. once they understand this approach, is get rid of the 26 stocks that they are 'diversified' in, and concentrate on winners." Actually, the first thing they do is buy QCOM, and maybe one of the others touted highly around here. Then, as the days and weeks go by, they see their G&K stocks go up while their others stay the same, go down, or fluctuate wildly with no consistent direction. That's when they start to consolidate. The next step is to chase some Shiny Pebble, and perhaps get burned. That drives them back into the conservative G&K camp, with no more than half a dozen core holdings. (My own, in order, are: QCOM, GMST, JDSU, SEBL, and CTXS.) The final step is to explore ways to exploit these primates for even more obscene returns while still keeping some measure of sense and safety. My hunch is that in retrospect Frank will be considered to have pioneered the way, putting together a portfolio consisting of young gorillas sprinkled with young gorilla LEAPS. I'm not there yet (haven't thought it through nearly enough), and even Frank considers such a posture to be on the radical fringe, so he's embarrassed by it. But if indeed the gorillas are what we think they are, and LEAPS are what they seem to be, it kinda makes sense to go in that direction in order to get some further turbocharging of returns...certainly it seems better to use LEAPS than to go on margin... Anyway, I promised myself I wouldn't open this discussion for real until I know more, so ignore the previous paragraph <ggg>. tekboy@KingJDSUupanother10today.com