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

To: Eric Jacobson who wrote (15200)	1/15/2000 9:21:00 AM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Eric, The thing that causes some confusion is that the style of gorilla gaming that's actually discussed in the book (buying the basket of stocks in a gorilla game where the gorilla remains unclear and then consolidating into the gorilla over time as it becomes clear) is generally not practiced here. That may or may not be true. We've never conducted a survey. Just because some outspoken people (like me) whose keyboards won't shut up (like mine) tend to think that way doesn't mean the consensus thinks that way. More important, though I don't necessarily subscribe to the strategy of buying a basket of stocks, I will buy the leading candidate for Gorilladom long before it is a Gorilla. The reason I don't buy a basket of stocks is because I don't want to be forced into buying weaker companies. My choice in Siebel has rewarded me handsomely so far (though I realize most people consider it a confirmed Gorilla while I don't.) I also have a small position in Gemstar, a company that half the people responding to my survey agreed with me is not yet a Gorilla. I think it's especially interesting that my Front Office Gorilla Game confirms for me that it is better to buy the leading candidate yet others have written that the game validates the strategy of buying a basket of stocks. So it's all in the interpretation and certainly a matter of personal opinion. My long-winded point is that while Elon might not be the most appropriate subject of this folder since the product probably has not yet crossed the chasm, we do discuss and invest in stocks here that are not confirmed Gorillas. MOST important is that our continued discussion of gorilla and royalty criteria sharpens our skills so we can ably distinguish between products in the various stages of the product adoption life cycle, between strong and weak value chains, between continuous and discontinuous innovations, between proprietary and non-proprietary architectures, between open and closed architectures, etc., etc., etc. Any time a discussion takes place that attempts to make those distinctions, I'm all for it taking place here because that discussion makes us better Gorilla hunters regardless of the company being used as an example. Just my opinion. --Mike Buckley