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

To: TigerPaw who wrote (54537)	11/1/2003 9:57:31 AM
From: Stock Farmer	Read Replies (3) \| Respond to of 54805

Yes. Not all winning stocks are gorillas. I guess I didn't make the point clearer. Let's say for example it is possible to select a basket of companies in which a Gorilla is likely to emerge. And let's assume that the theory of "outsized returns" from this basket is possible merely by investing in all of 'em and winnowing out the Gorilla. Now, if I was the only person on the planet who had read the best seller describing this strategy, then I might be willing to believe that the market would fail to price this basket in anticipation of a gorilla emerging. But that wouldn't have made it a best-seller. assuming the opportunity exists, then in order to win I have to be more adept at recognizing the opportunity than the market (which is the part of the strategy that appeals to the ego). Either on a macro basis (the basket in which a gorilla might emerge), or on a micro basis (the gorilla itself). Which leads us to the conclusion that the ability to win at the Gorilla Game requires us to be able to identify Gorillas before they are gorillas. In hindsight this is easy.