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

To: Mike Buckley who wrote (34553)	11/10/2000 8:45:21 PM
From: gdichaz	Respond to of 54805

Mike: Chuckle. Any comments about QCOM? Best as always.

To: Mike Buckley who wrote (34553)	11/11/2000 11:40:13 AM
From: gdichaz	Read Replies (1) \| Respond to of 54805

Mike: Using your guidance I went back to the revised manual pp 181 - 193. Thanks for steering me to a refresher course. The first point that hits in rereading is that the discussion is most relevant if Rule # 3 is followed - a basket of gorilla candidates. "Porfolio management" is examined with that backdrop, viz. p 187 "...the point of the gorilla game. This is a basket-of-stocks game, not a single-stock play, and by selling you are simply moving assets from an underperforming square on the board to a higher-performing one. ..." And on p. 188 there is this, "Now when people talk about portfolio stategy [italics], they are thinking about using diversification to reduce the risk of holding. What is counterintintuitive about the gorilla game is that it uses consolidation [italics] to achieve this end. Here are the key concepts: The gorilla game does us diversificatin [italics] in the portfolio [italics] sense to reduce risk, by advaocating that you invest in multiple tornado opportunities, each ideally reducing down to a sincle gorilla holding. The gorilla game also uses diversification [italics] to reduce the risk of buying [italics] high-tech equities when it is not clear [italics] who is the gorilla. This is our buy-the-basket rule. But the gorilla game uses consolidation [italics] to reduce the risk of holding [italics] high-tech equities, once it is clear [italics] who is a gorilla. "

To: Mike Buckley who wrote (34553)	11/11/2000 11:51:48 AM
From: gdichaz	Read Replies (2) \| Respond to of 54805

Mike: SFE is particularly interesting in the contest of Geoff Moore's evolving thoughts. As of now it is a disaster stock price performance, if bought, as I did, at a much higher price many moons ago. What to do as a practical matter. Since I have found in the past in my own individual case (such a Cisco in the early 90's) that the greater mistake is to sell when the stock price is in distress, I am holding and watching carefully. Is this wise? Hard to know. But I think there is a germ of an idea in Geoff Moore's latest thinking, and if so, perhaps over the next 3,5 or 10 years owning the earliest and most seasoned "incubator/nurturer" for B2B may pay off. Or it may not. Given the size of my investment, originally small and now smaller, my choice is to wait and watch. On the substance, the original reasons for the purchase are in place, but the currency SFE uses to buy into its companies is severely depreciated. That is a major difference. Does that mean sell now? For me no, for others, probably so. Again, I rely on my own experience, and that tends to tilt in the direction of when given a miserable current stock price situation such as is the case with SFE, check the fudamentals and act accordingly. So I hold for now. PS. Since I have tried to keep my "bargain" with Eric L and not comment on Qualcomm here until some of the smoke blows away and/or the fog lifts, I would appreciate your thoughts - unless you wish to wait for more clarity also.