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

To: Mike Buckley who wrote (12802)	12/15/1999 6:33:00 AM
From: gdichaz	Respond to of 54805

Mike: As you know, I have found limited baskets, i.e. 2 or 3 leaders in a rapidly expanding technology - with consolidation toward the winner (LindyBill's Russian Army approach), very useful and profitable. The little discussed point is that the stocks that do less well, in practice do very well compared to other alternatives outside the "basket" so money is made usually on the entire "basket" prior to concentration on the king or gorilla. This my experience when I bought Cisco in 1990 and Ascend in 1994. Couldn't find any other stocks to put in a basket when I bought Qualcomm so that was an exception for me. I did buy SDLI along with JDSU (and still have not consolidated there). I have made no secret of my views on this, although the "basket" is non grata on this thread - not the book of course. So I have tried the "basket" in the e commerce world. I own 4 nurturers - altho 2 (SFE and ICGE) outweight the other 2 greatly. One of the puzzling aspects of the revised version of the book was the idea that godzillas were to be chosen immediately rather than go through the basket process. This seemed inconsistent with the approach on kings and gorillas and extremely unwise to me. If godzillas are a sort of king/gorilla, then why not baskets? Especially since the entire e commerce and especially the B2B area is growing very rapidly, so that little if any money would be "lost" on the one or two stocks in the basket which over time are sold to consolidate the gains into the godzilla. Seems to me Moore is just learning here. His view now is consistent with his original approach. His way of handling godzillas in the revised book was an aberration. He now sees the error of that IMO. He is now consisent. In any case food for thought. Best. Cha2