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

To: pann1128 who wrote (22772)	4/14/2000 9:39:00 PM
From: kumar	Read Replies (1) \| Respond to of 54805

trying to gauge reasonable entry points for buying Gorillas. I'm not Mike, but if I may, let me relate my personal experience on this question : Aug 98 was the 1st time I bought CSCO. (and only 20 shares, coz thats all the money I had at the time). Bought at just over $90/share. An "investment savvy" friend of mine said to me "I was stupid for having bought at such a high price". I still hold it, (and added more over time), he sold it then to "boast about a great buck he'd made" You do the math on that purchase, and maybe that will help u understand a few things : - do not apply standard valuation metrics to a Gorilla. (because they are an elite breed). - If it was good enough for one to buy @ $82, it certainly has to be good enough to buy @ $57 (assuming one has some cash to buy with) - If one cant buy more (for whatever reason), then just hold what one has. cheers, kumar

To: pann1128 who wrote (22772)	4/14/2000 10:17:00 PM
From: Mike Buckley	Read Replies (3) \| Respond to of 54805

Piyush, Again, not trying to catch bottoms, but trying to asses reasonable valuations when I make the initial investment. I agree wholeheartedly. It's been a long time since I've added a new company to my portfolio, but if I were in a position to do so I would first compare valuations of like Gorillas or Gorilla candidates. As an example, if I felt I needed a silverback, I would look at all of the silverbacks' business fundamentals and valuations. If I found a valuation that was comparatively low that I felt was so due to a market inefficiency, I would be tempted to buy that one instead of one of the higher valued silverbacks. If all of them had valuations that were uncomfortably high I would look at younger Gorillas before making an investment decision. I hope I have been sufficiently vocal in the folder all along that: 1) I've never believed that any time is a good time to buy a Gorilla regardless of valuation; and 2) I've always believed that valuation DOES matter. --Mike Buckley