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No. of Recommendations: 5
Bens,

I appreciated your spirited post. I don't recall anyone saying that biotechnology is not an important sector for the world, for companies and for us as investors and consumers. I have money invested in the sector as well and will continue to do so moving forward. We're not pitting one against the other by any means. If that was suggested by anyone - I missed it entirely.

The books authors are Geoffrey A. Moore, Tom Kippola and Paul Johnson. Paul is senior high technology analyst at BancBoston Robertson Stevens. Tom is managing partner of The Chasm Group and wears several hats in the venture capital community for high technology as well as serving on several boards and is director of Whisper Communications. Geoff is a writer, author, chairman of The Chasm Group and is a partner with a venture capital group. They are all pretty specialized in what they do and their vast knowledge of the high tech industry. George Gilder is another specialized visionary in the high technology field that many of us follow. I'm sure that if they were all specialized in the biotechnology field, a likely collaborative effort would have prevailed as well. Perhaps there are already other books written on the subject, I don't know. There are certainly newsletters as I get both Michael Murphy's newsletter and The Bull Market Biotechnology report. Even the Bull Market separates their newslettes and research/reporting/study into four categories:

--- 1. The WIRELESS Investor
--- 2. The DRUG AND BIOTECH Investor
--- 3. The INTERNET INVESTOR Investor
--- 4. The FINANCIAL SERVICES Investor

The GAP and CAP model is not limited to high technology by any means and the authors do not claim it to be. In the book's instance, they used it on the high technology industry. In the revised edition, they decided not to 'avoid' the issue of what many in the market were calling 'tulips' and 'fraud schemes'. Instead, they decided to present a first look at the space which they called the Godzilla space to try and grasp the Internet based models. They used the Icarus Scoring System as a possible entry level way of coming up with a strength or weakness in a variety of Internet based business models.

I will hasten to add that this first attempt is an ongoing, changing model study that is still 'up for grabs' as I participate on the gorilla game listserv digest which Geoff posts to on an occasional basis. He has already changed his scope at how he is looking at Godzillas, so the danger is that the models are adjusting, attempting to clear the dust so it can settle and we really don't know enough at this point. Yet, the excitement is there.

As I understand the book, it outlines three strategies for the investor:

1. Buy a basket of stocks and sort the winners(Gorillas) from the losers over time.

2. Place your bets just as the dust settles on a few clear winners (Gorillas, Kings, Princes) as the Tornado disipates.

3. Buy only clearly dominate (Gorillas) after they have entered the appreciation phase of expanded CAP.

What the hell is specific to high tek about that advice and the GAP CAP model?


I think the book pretty much outlined how specific this advice was in the high technology industry. The dynamics of the golf swing, the tennis stroke and a side-armed fast ball have more things in common than they do differences as well. Yet, you will find few that can apply the same exact model to all three to produce the same results. Perhaps a very poor analogy, but I continue to believe that the amount of energy, effort and discovery to apply what is in the pages of The Gorilla Game - "Picking Winners in High Technology" - to another field of study might be counter productive to the focus of gorilla game study within, as you say:

"Silicon, Software, Computers, Cell Phones, Supercondutor Filters, SAW Filters, Diodes, Transistors, Chips, Photo-optics, satellites, narrow band spectrum, broadband spread spectrum, gobal positioning sats, etc?"

If the Gorilla group wants to get starch shirty about pure High Tek and only focus on High Tek, then what the hell is High Tek?

Hmmmmmmmm.......

BB








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