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

To: Mike Buckley who wrote (17116)	2/4/2000 3:39:00 AM
From: om3	Respond to of 54805

www.capatcolumbia.com Thanks for the reference Mike, this website looks like an excellent resource! One nice essay by Gorilla co-author Paul Johnson at capatcolumbia.com argues that value and growth investing are really two sides of the same coin. He ends by emphasizing the importance of continual upside surprise in a growth stock just as you were suggesting the other day: "Another view is to realize that growth investors are betting that the company will create more value in the future than is implied by market expectations. The investment payoff comes from static to lengthening CAPs and higher than expected cashflow growth or returns on investments (again versus expectations). Growth oriented stocks may suffer from group-think or mania (a potentially bad thing) which may lead to a security being over-priced. One of the key paradoxes of growth investing is that investor expectations should adjust to upside surprises. Therefore, for a growth stock to continue to outperform, the underlying fundamentals must constantly, and continuously, exceed expectations. This is not a trivial accomplishment to maintain." --Steve