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

To: Uncle Frank who wrote (30707)	8/29/2000 4:39:34 PM
From: janet_wij	Respond to of 54805

Uncle Frank, No Gorilla Game, and definitely not value investing, but an interesting comparison. Red Herring's "Fish or Cut Bait Index" is loaded with G&K favorites along with a few shinny pebbles. This is ltb&h, no trading in and out. It'll be interesting to watch. LaMonica did all the stock picking; here's his rationale. redherring.com Here's the index. stockmaster.com Janet

To: Uncle Frank who wrote (30707)	8/29/2000 6:07:40 PM
From: alburk	Read Replies (3) \| Respond to of 54805

Uncle Frank With all due respect I disagree. ...the gorilla game shares with value investing the idea that the market is undervaluing the target stock...because the fundamental dynamics of high-tech market development are being misjudged, and the gorilla's exceptional competitive advantages simply are not being priced into the stock I think we both agree this is a value approach. And it is clearly outlined as such in Chapter 4, Understanding the Stock Market. (I concede it should not be confused with conventional value investing of Graham and Dodd) Unfortunately, the Stock market tech frenzy has muddied the waters and valuation is an issue, even with gorillas, especially with gorilla candidates(even in baskets) (IMHO). We are in unchartered territory using a system that was back tested in an era that was much more "valuation friendly". GAP and CAP are the tools/concepts that we use to assess value and we agree that gorillas have superior GAP's and CAP's. But they are not infinite. The Gorilla Game is the most appealing approach to investing that I have come across. But valuation matters and IMHO the authors should address this issue in the next edition.

To: Uncle Frank who wrote (30707)	8/29/2000 6:25:22 PM
From: tekboy	Read Replies (3) \| Respond to of 54805

the authors disagree with you I think this is a semantic or definitional issue rather than a real disagreement. Buffett, for example, always said that the supposed distinction between "growth" and "value" investing was spurious, because consistent growth yielded excellent value. If you operationalize "value investing" as "buying out-of-favor butt ends with low PE's," then yes, GG can seem like the opposite. But if you take a broader view and operationalize it as "buying something whose true future value is not accurately represented in its current price," then GG is perfectly compatible with it. One might think of it as "enlightened value investing based on a correct appreciation of the oft-misunderstood dynamics of the technology sector." tekboy/Ares@sothere.com PS AB's right