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

To: RocketMan who wrote (16582)	1/26/2000 5:40:00 PM
From: LindyBill	Read Replies (1) \| Respond to of 54805

Does the field manual have anything to say about this? Maybe I should re-read it. Maybe too many people are reading it! It has been obvious for a couple of years that the heavy hitters in tech were getting all the money, and they will continue to. They will also get hardest hit if anyone gets nervous. If you want the big gains we board members want, we have to be able to handle the volatility!

To: RocketMan who wrote (16582)	1/27/2000 11:55:00 AM
From: que seria	Read Replies (1) \| Respond to of 54805

RocketMan: You wrote: <<So on a day when the Naz loses 2.3%, our G&K's lose 2x, 3x, even 5X that in the case of qcom, and this for companies that, we believe, are establishing the best and strongest value chains in technology. In the meantime, companies with little or no earnings, such as ebay, gain 12%. What is going on? . . . it is starting to bother me that I can not understand and explain at least to myself what is going on. . . . this volatility and selective hitting of stocks is a puzzle to me.>> I suggest that, by definition, stocks trade on market psychology, which is informed by but not necessarily entirely consonant with fundamentals. Since GG investors represent but a small part of invested funds, and since they (I think, correctly) believe their approach to be superior for LTB&H growth, it seems to me they should regard short term swings unwarranted by fundamentals as entirely to be expected. Market downspikes for short term reasons, or from a misreading of long term prospects, are just confirmation that GG investors and Mr. Market are different. From the GG perspective Mr. Market may not even be "wrong"--it is just focused upon something (the short term) other than what GG investors care about (LTB&H potential). Or, as with Q, it just shoots first and integrates answers later. I differ from many on this thread in preferring to keep lots of cash for buying opps, since to me even GG investors can benefit from the market's short term emphasis and/or misreading of LT prosptects by buying GG stocks on sale. I don't see how that is possible if you remain fully invested at all times in GG stocks, given just the market conditions you note, unless you are going to sell a GG stock that has held up to buy one that hasn't.