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

To: Mike Buckley who wrote (14740)	1/9/2000 7:56:00 PM
From: Thomas Mercer-Hursh	Respond to of 54805

It is not possible to become a Gorilla until its product has at least entered the tornado. There are just too many good people on this thread! If one isn't really on their toes, everytime one thinks of something good to say, someone else will say it first! Based on awareness of the overall cycle, one could elect to make investments at any point. The seeming advantage in investing in companies that are already proven gorillas is that the return is good, because they are underestimated, but the risk is low, because they are established. Attempting instead to invest in companies within the tornado is difficult because one has to be really on the ball and the risk is somewhat higher because one can still stumble on the way to gorilladom. It would do us all well to remember that GM doesn't just cite examples of successful transitions, but also of companies that seemed to have all the right stuff going for them, but then blew it because they didn't change tactics at the right time. Likewise, as you say, with the greater risk and potential rewards of catching a company before it really enters the tornado. One needs to remember that, not only is there greater risk because the company may not execute in such a fashion to become a gorilla, but one doesn't become a real gorilla in two or three months -- one may have meteoric growth in revenues and especially in stock price within a couple of months, but really establishing successful and sustainable gorilladom is not so quickly won.