Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Stock Farmer who wrote (48040)	10/17/2001 3:40:58 PM
From: paul_philp	Read Replies (1) \| Respond to of 54805

John, Have you ever read the chapter on "Living on the Fault Line" on Moore's theory of valuation? It is a natural extension from the Gorilla Game. It is pretty clear and between TGG and LOTFL I assert Moore present a comprehensive model for understanding valuation. I believe the model is directly inspired by Maubossin's CAP work with Paul Johnson. MM and PJ present a method for peforming valuations. I have often wondered why none of the valuation fans ever return to the valuation model at the heart of the Gorilla Game. Paul

To: Stock Farmer who wrote (48040)	10/17/2001 4:25:52 PM
From: Thomas Mercer-Hursh	Respond to of 54805

Strictly speaking if one follows The Game then aren't the appropriate times to buy limited to (a) in the bowling alley, or (b) early in the Tornado? I don't see why. In fact, it could be the exact opposite. Early is certainly the way to create the greatest potential for very large gains, but it is also the way to create the greatest risk. In the bowling alley, the tornado might not form or it might form only with respect to a very small market - a one pin wind, as it were. Early in the tornado one still has the risk that one has misjudged the tornado or that the company will fail to execute in some fundamental way, e.g., failing to ramp up to deliver the goods or hanging on to a business model which worked in the alley, but won't work in the tornado. And, in both places, as we have seen, if the company gets the positive attention of the MoMo crowd, it may be a lot more expensive than makes sense. Likewise, a mature gorilla still has a lot of growth in it, including the potential for using its gorilla power to develop new tornados. And, as a mature company, it may be less "exciting" than the young companies and thus might be more reasonably priced.