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

To: Bruce Brown who wrote (26778)	6/25/2000 8:45:00 AM
From: Mike Buckley	Respond to of 54805

An amazing amount of high technology companies were run through the criteria with most of us trying to make it fit the criteria I've got two points about Bruce's comment. The first is that there is always the tendency for us to want a prospective stock to fit a particular set of criteria. But we should do everything possible to avoid that tendency. Instead, investors should be more like scientists looking for answers to questions without being predisposed about what those answers might be. My second point is that as I compare my portfolio with the Rule Breaker portfolio, I continue to believe mine will do about as well but with a lot more safety. That's because I believe the criteria involved in Gorilla Gaming lean toward safety to a far greater degree. In that light, it's especially interesting that the Rule Breaker criteria outnumber the Gorilla Game criteria. Despite that, in my opinion the net effect of the Gorilla Game criteria is more restrictive and, thus, more safe. Just my opinions. --Mike Buckley

To: Bruce Brown who wrote (26778)	6/25/2000 8:47:00 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

the two specialists and portfolio managers for that style of investing are David Gardner and TMFJeff (Jeff Fischer). Jeff comes from an investment banking background while Brian comes from a news reporting background. And David Gardner, Tom Gardner and Geoff Moore come from a literature backgroud. Damn. I knew I should have read more books when I was a kid. --Mike Buckley

To: Bruce Brown who wrote (26778)	6/25/2000 2:53:00 PM
From: tekboy	Read Replies (2) \| Respond to of 54805

OT I don't really see any direct investing implications of this, but I was struck the other day by the similarities of some patterns our gurus are noticing.... Gilder Technology Report, June 2000 "The standardization of Gigabit Ethernet today gives the network rough parity with Fibre Channel I/O. By the year 2002, the standardization of 10 Gigabit Ethernet...will totally reverse the relationship between internal and external bandwidth. Beginning even this year, companies will pay a 5X penalty in access speed for the privilege of keeping a function in the computer box rather than committing it to the network. "In a 1995 email, Eric Schmidt...dubbed this effect the 'hollowing out of the computer.' When the network is as fast as the computer's internal links, the machine disaggregates acros the Net into a set of special purpose appliances. First to move was the printer...[then] displays and keyboards.... The real hollowing commenced with the move of storage to the Net." Geoffrey Moore, Living on the Fault Line, p. 112 "[In 'The Nature of the Firm'] Coase proposed that conducting transactions inside a company, where one can eliminate paying off the middleman, avoid sales taxes, and secure privileged access to scarce commodities, was inherently more efficient than doing so outside the company, and so over time, such transactions would migrate inside. At some point in this growth, however, he noted that the infrastructure needed to keep the internal value chains communicating efficiently and responsively would become bureaucratized to the point that it would become less responsive than the external market. At this size, increases in the company's competitive advantage from additional scale would be diluted.... Thus a point of equilibrium would be reached that 'explains' a company's given size. "This theory maps well to the history of the blue-chip companies that have made up the Fortune 500 for most of the past century. In the last ten years in the U.S. economy, however, as intercompany communications and commerce systems have become increasingly efficient, Coase's theory of transaction costs has now begun to operate in reverse! That is, the free market has become the low-cost provider of most transactions, and thus they are now migrating from inside to outside the corporation, with outsourcing, not insourcing, being the new low-cost play." tekboy/Ares@disciple.com