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

To: darbyc who wrote (29808)	8/11/2000 2:50:59 AM
From: Mike Buckley	Respond to of 54805

Darby, All of the decisions we embark on every day must be made according to our own, individual sense of what's best in ways that can't be measured quantitatively. As an example, Bruce's portfolio is a mutual fund compared to mine that has only six stocks. Neither portfolio is wrong on its own. Neither is right on its own. But both are right in the context of who owns them because both are right in the way they meet our investment needs as only we can percieve them. In that light, it's not "terrible" if you add 5-7 stocks. It's never a "waste" to invest in more stocks if for no other reason than it will help you better understand those companies and probably the companies you already invested in assuming you do the due diligence, not to mention the possibility that one of those new stocks might go through the roof. However, it's not necessarily "terrific" (though it could be!) to add more stocks because if one of the stocks you currently own goes through the roof your portfolio will do better if you simply add more funds to existing positions. Therefore, I vote for choice #4, "Fill in the Blank." But you're the one who needs to fill in that blank because it's your money, not mine, at risk. If the blank you fill in is based on the core of Gorilla Gaming, if you hold for the really long term, and if you develop a plan and consistently stick to it, choice #4 will likely suit you well over the decades regardless of how you fill in that blank. --Mike Buckley

To: darbyc who wrote (29808)	8/11/2000 4:47:46 AM
From: tekboy	Read Replies (2) \| Respond to of 54805

you should take advice from the Wise Men here, not the wise guys, but here's my two cents anyway... I see one significant upside and one significant down side to your proposed diversification plan. The upside is that it would allow you to form little "baskets" in sectors where you don't feel equipped to pick a single winner (either now or ever). This would enable you to make subsector bets (say, "fiber optics" or "storage" or "wireless" or "networking") rather than company bets, an approach to tech investing that you may feel is safer or easier. The downside is that it would hinder your ability to really get to know your companies as thoroughly as possible. Me, I see that downside as outweighing that upside, because the only thing that has allowed me to hold on firmly and (relatively) calmly during these last few months has been my great comfort level with each and every company I own (QCOM, JDSU, GMST, SEBL, NTAP, ITWO, and CREE, plus a couple of trace elements). That comfort, in turn, has been derived from obsessively following each company's fortunes, industry, management, etc. The more companies you have, the more difficult such DD becomes, and the more likely you are to either miss the signs of some impending disaster or sell out during a FUD attack because your confidence has been shattered. tekboy/Ares@shouldneverhavediversifiedintoCTXS.pov

To: darbyc who wrote (29808)	8/11/2000 7:14:55 AM
From: Apollo	Read Replies (1) \| Respond to of 54805

OK, darbyc, I've just read your reply, and your desire to add more stocks in other niches, including storage. Adding 5-7 more stocks would add risk, and would take away that most precious of commodities......time. You're suffering from what many of us suffer from.....that is, the desire to be invested in all these wondrous companies and hot areas. The fact is, unless you're already wealthy, you just can't be in everything. I'd love to be in Cree, like UW, both don't have enough money right now. Further, I've recently decided that my next investment will be to reinforce what I already have. I only have 7 companies....but even to decide what to reinforce is a tough decision. Do I reinforce SNDK, which is a great value play among hi techs, in the midst of at least one tornado, but not yet widely known? Do I reinforce Gmst, which is projected to hit critical mass end of this year, and should really begin to see increased revenues next year? Or do I reinforce my EMC/NTAP holdings, because any growth in the internet, especially with wireless appliances, equals growth in storage infrastructure? I would advise that you stick with the Magnificent 7 you have, spend your time "learning" the gorilla game, especially as it relates to the evolution of the companies in which you are already invested for the next year, and "know" your companies. good luck stan