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

To: Bruce Brown who wrote (25751)	6/3/2000 11:20:00 AM
From: Mike Buckley	Respond to of 54805

Bruce, I saw that piece by Tom Gardner and thought of responding to it. But I don't participate regularly in the appropriate place to do so. So I'll respond here. I think it's fascinating that between the piece Tom wrote and the piece he was responding to, neither one of them took into account the issues Gorilla Gamers understand that would help sort out whether or not Cisco, Softie or Intel should be bought at any price. Both authors could have used fundamental-to-the-core arguments supporting their thinking. Instead, both waxed eloquently about such nebulously subjective criteria that gave me absolutely nothing to hang my hat on. Perhaps people could rightfully accuse me of being married to Gorilla Gaming or that I've taken on the Gospel According to Geoff Moore as if it's a religion. So be it. At least on the first point, I plead guilty. --Mike Buckley

To: Bruce Brown who wrote (25751)	6/3/2000 11:47:00 AM
From: Seeker of Truth	Respond to of 54805

Thanks, Bruce, for a good reference. There was a certain amount of interesting and unplanned agreement between Mike's comments and Tom Gardner's comments in the Motley Fool. It's true that Gardner never addressed the issue of valuation. But both Buckley and Gardner think that the biggest mistake is to sell the good ones. Drops are short term; rises are long term. The profit from a long term hold of a gorilla is so great that if we try to make still more by selling when it is "too high", we can expect to make less. That's basically their ideas, if I may paraphrase them. Until and unless I learn better, that will be my practice and naturally I recommend it to all. Admittedly it was easy to say "don't sell" last week and the week before when prices were so low. More discipline is required when the stocks go to new highs. The problem of valuation may never be solved. There may be too many factors, including factors affecting demand for the stocks that have nothing to do with the companies' profits.