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

To: Uncle Frank who wrote (30748)	8/30/2000 5:17:48 AM
From: Seeker of Truth	Respond to of 54805

Things are not bad for us gorilla game investors lately but you never can tell when the market will drop and the snakes will emerge with their prophecies of doom. I'd like to add one more rebuttal. They say that tech is a bubble and all bubbles collapse completely. Actually they are confused because there is just a small element of truth in what they say and they don't realize how heterogeneous so called "tech" is. There WAS a bubble in companies that simply utilize the world wide web. The barrier of entry is just about negligible. This was the dot com bubble. Indeed the stocks have collapsed. Nowadays there's another bubble in progress; it's biotech. The path from knowing a gene to selling a profitable medicine is so long and tortuous, we don't even have an approximate recipe for going along it. But the market is pricing hundreds of money losing biotech companies as if they indeed had found an easy way to get to new profitable drugs. This bubble will take a long time to collapse because the product they hope to sell is a prolonged healthy life and the identification of individuals with those goals is far closer than that to attaining colossal band width or other such impersonal goals. But collapse it surely will. Red ink finally convinces. Meanwhile the stocks classified as gorillas were are and will be profitable. CSCO NTAP SEBL QCOM etc. etc. have continually increasing earnings, as a result of their proprietary architectures, stickiness etc. etc. Just something to remember when the snakes reemerge. We are not part of a collapsing bubble. Our companies are building solid positions.

To: Uncle Frank who wrote (30748)	8/31/2000 9:40:20 PM
From: Rick	Read Replies (1) \| Respond to of 54805

<font color=red>Ok, so it wasn't 9 months ago. <GG> To: John Stichnoth who wrote (16866) From: Mike Buckley Monday, Jan 31, 2000 8:00 PM ET Reply # of 30831 Gorilla investing is at heart Value Investing. Thank you, John. I wish the authors had done a better job of clarifying that important point. Instead, they offer in my opinion a very misleading statement when they write in italics that gorilla gaming "is not value investing." Two paragraphs later they clarify it in a comparatively nonchalant style: "Nonetheless, the gorilla game shares with value investing the idea that the market is undervaluing the target stock -- but not because it is out of factor, or because its fundamentals are being misjudged. Rather, in the gorilla game, it is the fundamental dynamics of high-tech market development that are being misjudged, and the gorilla's exceptional competitive advantages simply are not being priced into its stock." (Page 19, TRFM) --Mike Buckley