To: Walt Corey who wrote (45154 ) 5/28/1998 12:20:00 PM From: Chuzzlewit Respond to
Walt, I started reading a book called The Gorilla Game . While ostensibly a book on investing, it really is a book focusing on how technology is accepted by consumers. One of the contentions it makes is that certain technology companies enter what the authors refer to as a Tornado (which is a hypergrowth phase, and is characterized by mass acceptance of the product). According to the authors, stocks of companies entering this phase of their life cycles are undervalued and are consistently undervalued by the market for considerable periods of time. I reject this view, because it assumes that there is a proper value that is different from the market value.is the valuation mechanism. It is our guesses that are either over or undervaluations.
