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

To: Early Out who wrote (30)	2/16/1999 10:07:00 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

Domo arigato, John san. Frank

To: Early Out who wrote (30)	2/16/1999 10:47:00 AM
From: mauser96	Read Replies (1) \| Respond to of 54805

A look at the portfolio makes it clear that the authors were good at picking present gorillas, but not so good at picking emerging gorillas. Excise the latter from the portfolio and you get remarkable performance. I thought one of the key points of the book was stressing that companies like MSFT never get cheap enough to appear to be bargains on a P/E basis, and that their superior performance continues for many years after everybody has heard about them. There was an interesting comment on CNBC this morning suggesting that the companies that are doing well today are those that have come to grip with the realization that they can't increase profits by raising prices. IMHO,One of the keys to technology companies is that they make products that didn't exist before, and therefore have no well recognized prices. A gorilla introducing new products has even more price control because of it's brand dominance. The P/E of the minimal growth SP500 is so high that a lot of the high growth tech stocks seem like bargains.