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

To: Uncle Frank who wrote (8990)	10/27/1999 6:19:00 PM
From: Seeker of Truth	Read Replies (3) \| Respond to of 54805

Hello Uncle Frank. MSFT has more than quintupled since I bought it a few years ago. I'm not sure what you mean by traditional measurement standards. Actually no, I haven't found almost everything overvalued for the past few years. If a company looks set to triple its profits per share and sales per share every year for the next five years wouldn't it be worth 300 times earnings? And a company that looks like it will raise its profits and sales per share by 25% a year over the same five years, looks cheap at 45 times earnings. It all depends on the growth rate that we assume. So an understanding of the technology is the key. Who's competing, how hard is it to compete etc. etc. The trouble is, a person who knows software cannot necessarily be expected to understand semiconductors and a person who knows semiconductors may not understand the ins and outs of telephony. So there's no such thing as a "tech expert" in general. This makes our task hard. I don't think I'm a "value" investor: if I see an article talking about some retail stock or a bank that's selling at six times earnings, I look the other way. Like everybody else, I'd enjoy galloping, not crawling along.