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

To: Dinesh who wrote (44768)	7/22/2001 2:15:40 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 54805

Dinesh, I agree with most of your thoughts. Just a couple comments. >I have found Lynch's book to be an excellent guide for one > to develop a personal framework for investing I did not. There's way too much dated mish-mash: privatization plays, nukes in distress, small bank IPOs, Chrysler fiasco and rebound, international investing. Are any of these useful today? Not to me... I am much more influenced by Buffett and his strategy's extensions ("Buffetology", GG, some Ken Fisher). >I like Peter Lynch, so I should also like to point out that >he did not recommend merely buying what one knew but to use >that as the starting point in beginning one's research. You are right, but this advice, as other good advices, gets oversimplified. One may buy Nike shoes every day, but do they REALLY know Nike? It's a very tall assumption that understanding a large company that makes shoes you wear is easier than understanding a large company making optical components that you have not seen in your life. Couple examples: Nike has to expand abroad. But is their shoe fashion accepted in Asia or Africa? How well are they dealing with it? How saturated is the market? How much growth is there compared to United States? What will be the margins? What about expanding into apparel? Is this a good step or a flop? I don't think these questions are easy to answer from the common consumer point of view. So there's a trap of BELIEVING that you know the company, when in fact you don't. BTW, re Buffett and technology. It is frequently misstated (perhaps by Peter Lynch fans :-)))) that Buffett does not understand technology. The fact is that he understands it. And from his understanding, he chooses not to invest in it. Best Jurgis - Buffett would not like my portfolio either