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To: Jacob Snyder who wrote (266)	4/22/2002 2:05:05 PM
From: Cary Salsberg	Read Replies (2) \| Respond to of 13403

Jacob, CSCO has $18B annual revenues. A 47 PE on $.50 2003 "guestimates" yields $23.5. CSCO dominated routers and used its high priced stock to buy other companies. Its router dominance is being eroded by JNPR and its stock is no longer high priced. In technology, "LastManStanding" is not sufficient reason to invest. I don't know why you think CSCO is "steadily pulling ahead". They are not known for exceptionally strong research. They are ahead of LU and NT because their base was general industry and not telephone companies. They also have better financials than telephone industry companies. I am holding a small position in CSCO (800 shares). I have a cost of slightly less than $4/share. I have owned these shares since 1996 when CSCO bought a company I bought shares in about a month earlier. These are in a taxable account, unfortunately. I sold almost everything in my IRA account in 2000 and almost nothing in my taxable. I have advised 2 people to switch holdings in SPCT to CSCO at ~ the same prices, so I am not too worried (maybe wrongly) about CSCOs viability. I just don't think the size, valuation, and exceptional track record, qualifies it for addition to my 8, and I have tried hard to find additions.

To: Jacob Snyder who wrote (266)	4/22/2002 2:42:20 PM
From: Cary Salsberg	Read Replies (1) \| Respond to of 13403

Jacob, I want to pose a possible model for many of your favorites, CSCO, JDSU, EMC. In 1982-3 IBM was a $50B company. They geared up for a 5 year plan which predicted $100B. It is 20 years later and while they are still highly respected, they have not reached $100B. Since 1982-83, technology has grown very rapidly and we have had rapid economic growth. IBM was the strongest technology company and it was well positioned to take advantage of the growth. IBM was highly respected and its management was considered among the best, if not the best. My conclusion is that smaller and simpler is more likely to flourish. Gorillas are more likely dinosaurs or potential dinosaurs. Monopoly is the greatest ally of gorillas and the greatest impediment to progress.