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

To: ggamer who wrote (20464)	3/17/2000 2:27:00 PM
From: Apollo	Respond to of 54805

Is it better to invest in a strong king or take risks with future gorilla potentials? Really depends entirely on risk tolerance, age, self-security, etc. etc. etc. TFM advises to invest in neither, but to concentrate on gorillas in the tornado. Or to buy a basket until you can figure who the gorilla is. At most, TFM suggests "holding kings lightly". I'm 45. UF and good sense would suggest that I be more aggressive with a significant position in younger, higher growth issues. Yet 98% of my holdings (from biggest to smallest) is in QCOM, JDSU, INTC, GMST, EMC.......just 2% is in EXDS, my thrill-seeking play on B2B and internet infrastructure. I consider the former companies to be gorillas, kings and gorilla candidates (GEM*). These are stodgy and pretty near "sure things". Why am I not heavy into the smaller, more exciting issues......because I want to establish a sound and credible GG track record for a few years. After that, I can take a few more flyers and still retain the confidence of my spouse. But if I take some flyers now that don't work out, then that gives me a "mixed record", and leaves my spouse with more doubts and less comfort. What with Qcom's performance last year, and the rest of the portfolio, credibility is looking good, even with the Q's declining performance this year. Alternatively, look at Sir Dancelot. Convention would say that he, as a dancing senior, should be more conservative. Of course, the zoot-suited one is innovative, smart, plain-speaking, and not exactly predictable or conventional. His situation is that he has already hit his magic numbers for secured retirement; he's building his fixed asset position for the long haul, and he's having a blast with experimentation and MO-MO-ing this year.....not to mention jacuzzi's, and other assorted asides. So, it's up to you....and to each of us. Apollo

To: ggamer who wrote (20464)	3/17/2000 3:51:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

>> I wanted to know why Uncle Frank and Mr. Buckly have not taken a position in JDSU Speaking for myself, since I feel that jdsu is a King, I've been reluctant to tie up a large amount of capital in it, as I prefer established and emerging Gorillas. That posture changed this week when cboe introduced LEAPS for jdsu. This allows me to participate in the expected growth of jdsu with 1/3 the investment capital necessary to actually own the shares. My position is in yjuat (January 2002 100 strike price LEAPS calls). uf

To: ggamer who wrote (20464)	3/17/2000 4:19:00 PM
From: John Stichnoth	Read Replies (1) \| Respond to of 54805

Re: Is it better to invest in a strong king or take risks with future gorilla potentials? That is what the "Understanding the Stock Market" chapter is all about--GAP, and CAP. What is the total net present value of the company's future earnings? What amount is the market discounting (i.e., what's its market cap)? King JDSU discounts a lot more future earnings than GMST, for instance, since its mkt cap is so much larger than GMST's. So, even though it is "just" a king, the market is expecting greater things from it than from pre-gorilla GMST. That may be correct, since JDSU's opportunity is so much greater. Best, John

To: ggamer who wrote (20464)	3/17/2000 4:37:00 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

I have another question that might be a bit too personal but I wanted to know why Uncle Frank and Mr. Buckly have not taken a position in JDSU I don't know Frank's reason, but mine is for a couple of reasons. The most important one is that I'm happy with my current portfolio positions including the allocations of them and have no need to introduce any changes. The second reason is that my strategy is to invest exclusively in Gorillas and leading Gorilla candidates, a strategy which as best I understand would not include pursuing JDSU. On that last point, no matter what strategy or combination of strategies we select, there will always be monstrous returns that we don't participate in. JDSU is a perfect example in my case. --Mike Buckley