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

To: Fred Davis who wrote (22438)	4/8/2000 1:42:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

<diversification> You've raised a topic of much interest, Fred, and I've enjoyed reading the different perspectives contained in the responses. Imo, Squire Hawk made a most interesting observation with his comment that, Diversification is a strategy used to maintain wealth, concentration is a strategy used to create wealth. Over the past 12 months, my portfolio has ranged between 1 and 10 components, and is currently at 5 (qcom, csco, sebl, ntap, gmst). I've found that the anxiety level I suffer during a correction is indirectly proportional to the depth of dd I've done on the stocks I'm holding. And though I'm at this full time, I'm unable to stay current on more than a handful of stocks at any one time. As a result of this concentration, Nancy and I were able to handle last week's rock and roll with a fair degree of aplomb and emerge unscathed. >> I hung in there until we tumbled from a post-split price of 200 back down into the 130 range, that really got my attention and was lesson 101 for me and made me realize I wasn't quite ready to jump in with both feet and hold just a few positions. You weren't alone in that, Fred. Several of the elders sold Qualcomm during the panic of August 1999, opting for less concentrated positions later on. Goeff points out that concentration is contra-intuitive; it takes a while to be comfortable with holding a small basket of G&Ks. You've identified your current portfolio as QCOM, SEBL, NTAP, GMST, CREE, ELON. It should be possible to follow each of these and become an expert in their businesses and outlooks. My only concern is weighting. You are holding 2 Gorillas, 1 unconfirmed Gorilla, 1 King, and 2 pre-Chasm or Bowling Alley stocks, and if you are equally weighted, you may have assumed more risk than I would recommend for a beginning G&Ker. >> I also bought back the Q and now know to keep a gorilla grip on it and have no desire to sell it again. The longer you hold a Gorilla, the less you will be concerned about doing so. You've had a lot of trades since you started GGing in November. Try to keep your eyes fixed on the horizon, and though it's hard to do at first, ignore the day to day action. Welcome to the thread, Fred. uf

To: Fred Davis who wrote (22438)	4/8/2000 9:35:00 PM
From: Nichols	Read Replies (1) \| Respond to of 54805

Fred, many people on this thread, myself included, got very spoiled with QCOM in 1999. Many of us, myself included, attempted to hit another grand slam by investing in very young, POTENTIAL gorillas, such as CREE & ELON- certainly straying from the manual. While I am still very happy (and well in the green)with these purchases (I did not sell a single share of my G&K's such as QCOM/CSCO/JDSU to finance these buys), the past month has humbled me and gave me deeper appreciation for the Gorilla, and the Gorilla Game.

To: Fred Davis who wrote (22438)	4/10/2000 3:50:00 PM
From: freeus	Respond to of 54805

Fred one of the major point (as StockHawk pointed out) of owning just a few stocks is the ability to keep abreast of the news for those companies. I have had no trouble holding Qcom, Gemstar and Citrix during the ups and downs because I studied them so well (for me) and watch the news for them regularly. I have had a lot of trouble holding others that I bought "for trading" because I just did not know them well enough and so did not have strong convictions about the future success of the company. Freeus