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

To: Uncle Frank who wrote (31639)	9/14/2000 4:58:56 PM
From: Bruce Brown	Respond to of 54805

UF, Where did I come up with that $1B annual revenue requirement? I guess I thought that was an oft quoted benchmark in terms of thinking about a company that has established a solid of enough revenue base and market share position when considering it as an investment possibility. I apologize if I got that crossed with any market cap considerations. Didn't we go through this with Siebel back in 1999? Regardless, I do appreciate the fact that the anchors of our portfolios should be these larger revenue companies. I don't want anyone on the board to think that I advocate having a large portion of one's investment capital tied up in emerging games via the basket strategy and call it 'safe'. I posted my portfolio breakdown and believe that I've got 16 to 18% of my capital devoted to some of the early games where companies annual revenues are far below the $1 Billion range and are in the tornado. There is, of course, more risk involved in that strategy even though the money will be consolidated into the final winner of each of the games at some point in time. As we have seen with previous candidates that emerged as gorillas, one doesn't have to be in on the complete front end to achieve excellent returns. The problem these days is that everyone knows that and is in earlier and earlier. I've been amazed at what appears to be the amount of institutions switching money from the big ultra caps into the high growth mid-caps and the below $75 Billion caps in high technology over the past few months. We've seen Siebel receive a lot of that type of interest along with many other high growth younger companies mentioned on this board. In terms of our big cap gorillas and kings, Oracle might have been at least a little shot in the arm we needed in terms of calming fears of earnings. Now watch it sell off.... BB