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

To: daffydog who wrote (12681)	12/13/1999 5:33:00 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

MGG, Thanks much for finding the page with the stuff about regressing to the mean and extreme! In addition to the stuff you quoted, I'm going to add another quote. Your quote: "When high-tech markets go inside the tornado, they can behave just the opposite of mature markets on Main Street. Specifically, in gorilla-chimp-monkey markets, valuation regresses to the extremes, not the mean... This is the so-called network effects model of increasing returns." The next paragraph that puts it in perspective for me: "By contrast, in king-prince-serf markets, valuation does regress to the mean, even in a tornado. [My emphasis.] This is the traditinoal economic model of diminishing returns." Frank, that's in the revised manual, required reading for you before you get any gifts this holiday season from Aunt Nancy. We've included her in our networking effects. :) --Mike Buckley