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

To: Greg Jung who wrote (44655)	7/18/2001 1:33:55 PM
From: kumar	Respond to of 54805

the "hold and hope" investment mode does not appear to be workable. 1. Many of us dont "hold and hope", we "buy, hold, until fundamental changes occur" 2. "workable" : U're likely to get a very different opinion from someone that has held a MSFT or CSCO etc for about 10 years. cheers, kumar

To: Greg Jung who wrote (44655)	7/18/2001 4:34:58 PM
From: Knight	Respond to of 54805

The ability of a tech company to generate predictable profits is suspect if not nil . . . Given these aspects of tech companies the "hold and hope" investment mode does not appear to be workable. This is a broad generalization which, for many people does indeed accurately describe tech investing. However, this does not accurately describe Gorilla Gaming. After being employed in the tech sector for a number of years, I began to perceive certain factors that made some companies wildly successful vs. their competitors (competitors who, in many cases, had significantly superior products); however, my understanding at this stage was more of a vague intuition than a formalized framework. (Often our experiences provide us with certain "instincts" about things that, although accurate, are not always easy to articulate, and are, in some cases subconscious.) About two years ago, I read The Gorilla Game, and discovered in it an excellent articulation of many of the things I had learned almost subconsciously from my own experiences in the tech field. In the process, it provided a very useful nomenclature and framework for evaluating and classifying various potential tech investments. This framework acts as an excellent filter to sift out from the extensive universe of tech stocks, those relatively few companies that offer the best long-term risk/return potential. The framework is rooted in an basic understanding of how technology markets develop and the way high barriers to entry are created for the winners, creating, in some cases, a "winner take most" scenario. The "Gorilla Game" framework not only helps to identify good tech companies, it also provides information that allows you to classify those good companies into further subcategories, based on the imperviousness of their barriers to entry. For example, anyone who has read the manual and followed this thread over the last year will know immediately why a long-term investment in, say, DELL or EMC, must be watched much more closely and held more "lightly" than a long-term investment in, say, SEBL or QCOM--although all are probably good companies. Gorilla Game is not "hold and hope"; rather, it shows you how to educate yourself to be able to identify and purchase companies that have the deck strongly stacked in their favor in fast growing markets. The ones with the deck stacked in their favor may lose a few hands, but they usually win the game. It also identifies factors to look for which should lead you to consider selling those companies.