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

To: Uncle Frank who wrote (43635)	6/18/2001 6:45:23 PM
From: Brian Sullivan	Read Replies (1) \| Respond to of 54805

Don't Judge a Fund by the Book Management guru and Harvard Business School professor Clayton Christensen was once called a rising star of the New Economy and "the most important business thinker in the world today." His celebrated 1997 book, The Innovator's Dilemma, remains a best-seller. So when he launched a mutual fund last year, the financial world had high expectations. As it turned out, the Nasdaq peaked on the fund's first day, Mar. 10, 2000. And, BusinessWeek has discovered through SEC filings, the fund quietly closed before seeing its first birthday. The $3.8 million Disruptive Growth Fund, which Christensen co-managed with St. Louis brokerage owner Neil Eisner, held 45 stocks, with Broadcom, Digex, and EMC among the largest holdings. When the fund liquidated in February, it had lost 64% of its value. Christensen and Eisner declined to comment. Nearly all the stocks were chosen by Christensen based on his theory that companies that develop innovative products--"disruptive technologies"--can topple market leaders. In hindsight, however, the only disruption was in sky-high valuations for tech stocks. By Susan Scherreik from Business Week businessweek.com@@er5052UQjpd6tAcA/premium/content/01_26/c3738015.htm

To: Uncle Frank who wrote (43635)	6/18/2001 10:50:32 PM
From: Stock Farmer	Respond to of 54805

UF: Interesting perspective. Thank you for kind words. Yes, I remember my Grandfather advised me: if you invest effectively, you can achieve growth and value and income all together. Plus basic economics. Like a good garden, it's just common sense and a lot of spadework. No problem satisfying curiosity on my experience last 15 months. I have posted elsewhere. Bottom line, I escaped with only minor bruising. Unwound almost ALL my tech. I lined up my sights in June, held my breath and pulled the trigger mid July 2000 on about 80% of my portfolio. I finished exiting in October. Holy Income Taxes Owing Batman! Do I hold long positions? Only in higher than bond yield dividend spewing blue chips that were under-valued by my estimation, preferred shares and assorted government securities. Can you say "bunker"? With a few exceptions that represent a very small and smallening fraction of my portfolio (less than 5%). Either oversight or sentiment or just ineffective decisions. I also hold 350 shares of Laidlaw that I like to point to as "tuition". Plus of course the "untouchable" mutual funds my wife and I started so many many years ago. John.