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

To: daffydog who wrote (20698)	3/19/2000 10:53:00 AM
From: gdichaz	Respond to of 54805

Mark: At the risk of too many posts in a short time span (at least the subjects vary a bit), having ridden Cisco up for years from one "impossible" market cap to another, I would suggest that if you are in the right place at the right time and if you manage as Cisco has managed, then the size of the market cap is not a practical problem. While JDSU is a king not a gorilla IMO, the least of JDSU's problems is the potential size of its market cap "x" number of years out. What JDSU needs to do is execute well, the market cap will or will not reflect that. But an absolute barrier it is not. Best. Cha2

To: daffydog who wrote (20698)	3/19/2000 10:58:00 AM
From: Mike Buckley	Read Replies (4) \| Respond to of 54805

Mark, Any thoughts? Yes. I've been doing a lot of thinking about the sort of thing you mentioned regarding multi-trillion dollar market caps. Specifically, I've been thinking about the axiom that a company with $10 billion in sales can't continue growing as fast as when it had "only" $1 billlion, or that a stock of a company with a half-trillion dollar market cap can't go up as fast as when it was "only" a $1 billion cap. While I understand the underlying rationale of that sort of traditional thinking, I think it tends to ignore what Moore calls the "networking effects" that impact both sales and market caps. Thanks to the Internet, the mother of all networking effects, I think there's a pretty good chance that the traditional thinking described above might be put to rest thanks to networking effects. I don't think exponential growth can increase forever at the same rate. However, I do believe that this relatively early stage -- truly, still the infant stage -- of the Internet will foster such growth that the companies which benefit the most from the networking effects will continue to enjoy it as never before. If I'm right, we'll see a lot of so-called truisms about the limitations of growth move into the category of myth. --Mike Buckley