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

To: LindyBill who wrote (171)	2/20/1999 11:54:00 AM
From: Mike Buckley	Respond to of 54805

Mike sez: Why does market cap matter? LindyBill sez: Because the institutions just won't support the small caps, Mike. They know that a bad quarterly report can really run the stock down, and their isn't enough volume for them to get out. Mike counters: Using that philosophy we wouldn't have bought MSFT, INTC, or CSCO when they were small- or mid-cap stocks. The point of investing in potential gorillas and kings before they become established gorillas and kings is that over the very long term the returns can be overwhelming. I think there are lots of ways to make money in the market, and investing or trading only in established gorillas and kings is one of them. But getting in on the ground floor of leading, proprietary technologies in the wireless, front office software, data compression and storage businesses (and others too!) seems like a very reasonable long-term strategy. Though there has been a lot of criticism of the authors' picks of small-cap stocks, I do believe we need to remember that the authors' strategy is a long-term one that is not even one-year old in practice. --Mike Buckley