Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: mauser96 who wrote (13381)	12/28/1999 3:17:00 AM
From: Bruce Brown	Read Replies (3) \| Respond to of 54805

<<cisco is the past>> One of the major precepts of the gorilla game is that companies like CSCO (or MSFT or INTC) can maintain competitive advantage well into old age, with as nice stock return (though not equal to a a gorilla in the tornado). Thank you, Lucius, for coming to the aid of Cisco. I was too busy cleaning the coffee off of my computer keyboard and screen when I read the earlier statement about Cisco being 'in the past'. From this investor's standpoint, it is far too early to be making in comments aimed at counting Cisco's growth out of one's portfolio. More than any other Gorilla, this one has an 'option effect' that they have used as one of their core strategies over the past 9 years by adding technologies to their fold via purchase. Not only will that continue, but management has telegraphed a banner year of purchases in the year 2000. Even if a large proportion of Cisco's game is played under the royalty game - it is a stock that remains in my portfolio not only for what it is, but also for what it will become. I have to disagree that this company and their technologies are 'in the past'. I firmly believe they are in the present and future all mixed together in the form of a 'must own' stock. Granted, explosive returns of other companies that are earlier in the technology adoption life cycle will surpass Cisco's return. However, just because returns will not match doesn't mean that the company is 'in the past'. Not that top ten lists carry much weight, but interesting to note that Cisco and Microsoft are both included in Red Herring's "ten stocks for the next century" list. Not to mention, Cisco was on the 1999 top ten list (along with Microsoft) as well as the number one pick in the 1998 top ten list. Here's the time frame return for CSCO and MSFT over that period of top ten picks for 1998 and 1999 up to yesterday's close: siliconinvestor.com CSCO = 644% MSFT = 477% If those are the types of returns an aging Silverback can provide, I would not want to kick them out of my portfolio as being 'in the past' just yet. I know it all has to do with one's capital base and where they want that money invested, but I remain invested in core holdings like Cisco, Microsoft and Intel because the earning power of these gorillas remains quite potent. It's 'other' money that I have invested in the younger technology adoption life cycle opportunities in hopes they can resemble the long term growth that the Silverbacks have provided over the years. BB