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

To: Fred Davis who wrote (9714)	11/6/1999 8:02:00 AM
From: uel_Dave	Read Replies (1) \| Respond to of 54805

<<I bought a few shares of QCOM yesterday at 276 and jumped in at the close for a few more at 292. Q is now my largest holding. I also still own MSFT, AOL and WMT. Probably need to kick out WMT and buy more AOL or QCOM. >> Hi Fred, congrats on your purchases of Q, you will be very happy with them for several years. If you refer to the RFM ( Revised Fine Manual ) on page 193; there are lists of rules that can help guide you in your decision: First the Gorilla Game only focuses on High Tech companies, therefore, can not comment on WMT. QCOM and MSFT are Gorillas and AOL is a King. Rule 4. Hold gorilla stocks for the long term. Sell only on proven substitution threat. Rule 6. Hold Kings and princes lightly, selling individual stocks on a marketplace stumble and the category upon deceleration of hypergrowth. Rule 7. Once it becomes clear to you that a company will never become a gorilla, sell its stock. Rule 8. Money taken out of non-gorilla stocks should immediately be reinvested in the remaining gorilla candidates. -------- Therefore by the rules of the RFM, the guidance would be to sell WMT and buy gorilla stocks such as MSFT and QCOM and holds Kings such as AOL lightly. <<I am starting with only 10,000 capital and unable to buy blocks. >> I never bought a block ( 1000 shares )of QCOM. I have bought it 36 times over the last year ( no selling of the stock yet ) and bought as many as 200 shares and low as 5 shares at a time. The gorilla strategy just has you add money to the gorillas when you have it available, instead of trying to time the market and wait for pullback. There are other opportunities that QCOM and other gorilla stocks correct for no apparent reason, then refer to the RFM: Rule 10 Most news has nothing to do with the gorilla game. Learn to ignore it. (e.g. the cancer story with cell phones was a recent buying opportunity ) David

To: Fred Davis who wrote (9714)	11/6/1999 8:42:00 AM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Fred, A special congratulations goes to you for your initial foray into gorilla gaming. Considering that the first manual came out last year, none of us are far ahead of you in that regard. However, when you see that some folks around here are saying goodbye to their day jobs, I'd like to offer some perspective about your $10,000 outlay, especially if that's your total portfolio value. When it comes to saving and investing, the most difficult part for so many people is getting started! They understandably feel that saving that first $1000 won't really affect anything so they'd rather buy a new suit, enjoy a couple fancy restaurant meals, and take a long weekend at a modest bed and breakfast. But ya gotta start somewhere and you are obviously past that point! I began keeping serious track of my investments in 1990 though I had been saving long before that. (There have been very few years that I didn't spend less than I earned including the early years of my career when my earnings were meager.) When I look at the progress of my portfolio today as measured from the start of the decade, I see that it is now 19 times larger. For every dollar of net savings (I record every addition to and withdrawal from our portfolio), there are $3.25 of earnings. Though I don't have the billions that Senator Everett Dirksen referred to in his famous remark, he's right that after awhile it really begins to add up. But not if ya don't start saving and investing. Your post should be a beacon to those who think there's no point in starting a savings plan. Have a great weekend and thanks for joining our version of Camelot. --Mike Buckley

To: Fred Davis who wrote (9714)	11/6/1999 8:53:00 AM
From: Jill	Read Replies (1) \| Respond to of 54805

Fred... I was trying to tell a good friend of mine yesterday, a woman who has an apartment worth over a million, which she bought for 80,000, to invest just a few thousand in Qualcomm. I haven't convinced her yet. She said her cash flow is really tight. In any case, I mentioned the situation with DELL: $5,000 in 1992, just in equity, no margin, no options, would have been one million last year. Maybe we will be lucky enough to find another DELL. But as Mike points out, you have to start somewhere. And if you can go back and find LindyBill's classic post, he started out with something like 5K in his KEOGH. By the time he hit his million dollar mark about 7 years later he'd contributed a total of under $50K. He just made incredibly great decisions and had no tax consequences. The latter is the most instructive to me--as a writer I never figure on retiring, and I doubt my income will drop suddenly, so I never understood the benefit of ploughing as much $ as legally possible into a KEOGH (for tax consequences yet--but for investment purposes, I just didn't get it) until I read Lindy's story. Then I got it. In fact, I was told the same by another veteran on SI, he said to me, "Borrow money if you have to--put as much money as you can into your KEOGH every year." Jill

To: Fred Davis who wrote (9714)	11/6/1999 1:10:00 PM
From: EllieMae	Respond to of 54805

Good morning, It looks like I am not the only newish person on the board. I am really liking it here. I have had people respond to my messages right away. I am still learning the bells and whistles of the SI boards and am going to do a Portfolio today. I am starting my "reading assignment" this week as I received email from Amazon that they shipped my books already! Happy Me! There are very many posts this morning and it tickles me to see that. I do not have a local ISP, so I cannot stay logged on for hours at a time as I would really like to do...but, I do plan to spend time on this board. Education pays off so big, that I will gladly pay the phone Co. their fee to stay here as long as I want to and learn everything I can. I need to do changes in my portfolio also.. I am going to buy some Q on Monday. Probably just 50 shares right now, but more just as soon as I can swing it. Have a good day! EM