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

To: gdichaz who wrote (22858)	4/16/2000 5:25:00 PM
From: Uncle Frank	Respond to of 54805

>> Two examples are GE and SUNW. What are they? GE's a conglomerate and SUNW's a King. >> it still seems that there ought to be some way to discuss them here within GG terms. Already done for SUNW, impossible for GE. uf

To: gdichaz who wrote (22858)	4/16/2000 5:36:00 PM
From: tekboy	Respond to of 54805

re "riding through the storm": I think comparisons of how various companies have behaved over a short stretch of time, especially in one market direction, are not as interesting as longer-term comparisons. We can't just look at how well they've held up over, say, the last week or month; we also need to look at how much they had appreciated in the past, and at how quickly they are likely to rise back up again when things turn around. For example, there is no question that the silverbacks have held up better than many other techs during this drop. But one reason that the high-flyers dropped so much is that they had come so far in the first place, and many of them are still ahead of our beloved pongids over time. I'm as devoted to the theory as anybody, but for those newly committed to a pure gorilla diet, these charts (with some gorillas, some kings, and some pebblish neonates) are worth considering: siliconinvestor.com siliconinvestor.com siliconinvestor.com tekboy/Ares@bruce'sturn.com

To: gdichaz who wrote (22858)	4/16/2000 5:41:00 PM
From: Bruce Brown	Respond to of 54805

RE: GE and Sun But anyone who has looked at what has happened to these two companies in the latest unpleasantness notices that they are riding through the storm like the strong ships that they are. Well, Sun just reported earnings late last week that were good enough to inspire and keep it floating in the muck late in the week. However, it is down from its high of $106 3/4 to $76 1/2. It's hard for me to see how the $30 drop in Sun makes you believe that it is riding any better than the others through the storm in technology stocks. Intel is down to $110 from a high of $145, EMC is down to $110 from a high of $145 as well, Cisco is down from $82 to $57, Oracle is down from $90 to $63 and one of Suns competitors in the server space, Dell is down from $59 to $47. GE is down from $164 to $145 and is considered a 'conglomerate'. I like to call it a 'mutual fund' since it is anchored in at least 13 unique and separate businesses. BB

To: gdichaz who wrote (22858)	4/16/2000 5:57:00 PM
From: porkbay	Read Replies (1) \| Respond to of 54805

re:what is GE Although this market is still playing itself out and more hits may be in the works, to me GE represents diversity by at least a king in a mostly non-tech industry. Likewise, Medtronic in medical devices, Walmart in retail and so on. It is this diversity which should give some protection to a portfolio without necessarily slowing down its growth very much. All are essentially ltb&h stocks and that is the essence of the Gorilla Game. I find that the value of the book is in the discipline that it brings to investing in the tech stocks for ltb&h. Many of the lessons can be used to think about non-tech stocks as well, but that is a different book. One thing the book doesn't tell you is how to allocate your resources but most of us instinctively hedge our bets in one way or another with real estate or gold coins or antique furniture. Think of GE as a hedge, and not a bad one. (disclosure-I own GE) porkboy