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Hi Bruce,

So you would sell your Dell shares from your Simpleton?
Would you? Or do you think that for the Simpleton Dell is still ok?

Efti
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No. of Recommendations: 2
Efti wrote:

So you would sell your Dell shares from your Simpleton? Would you? Or do you think that for the Simpleton Dell is still ok?

This is OT for this board.

Once again, I urge you to search the June 3 - 5th section on the Dell board as well as the Rule Maker archives for the Simpleton exercise that began in July of 1995. The rules were 10 stocks for 10 years. No substitutes, no trades.

BB

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No. of Recommendations: 2
Hey Bruce,

Great job on the Fat Pipe series! I want to throw that in there before I make a suggestion. I've been printing each Fat Pipe series out and saving them for a reference. And I also think that you're doing everyone a great service because you could have easily saved the series for soapbox.com and charged for them.

So to my suggestion. Over time I have used Gorilla/King style of investing and have enjoyed the great benefit of the model. What I think is that once that fat pipe series is finished a model portfolio should be set up for all to follow. I have my own set-up and it'd be a good learning experience for all Gorilla gamers to learn from a model port, methinks. Gradually, I have leaned more toward Gorilla gaming, over other stock criteria's and I think The Motely Fool would benefit. The Rule Breaker is a good criteria to follow but misses, IMO, the technology leaders of tomorrow. For IE, I doubt the RB port would have ever invested early in Intel, Cisco, or EMC because their lack of consumer branding but they are investments in hindsight I think we all wish we made.

Gorilla Gaming finds these companies and that's why I think it'd be an important addition to Fool ports for us to learn from and feed off each other.

Let me know what you think?

Once again, thanks for your time and effort.


Nick



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NicholasJG said: I think is that once that fat pipe series is finished a model portfolio should be set up for all to follow. I have my own set-up

Nick,

With the relative ease of setting up model portfolios, everyone should set up a few...

I have three in particular that I look at regularly.

1 - "Watch Stocks". These are stocks that I'm keeping an eye on, either because I might be interested in buying them or because I want a place to collect related news articles and track their share prices. I "buy" $1000 worth on the day that I add them to the portfolio then watch them.

2 - "Opportunity". These are stocks that I made a conscious decision to NOT buy in a real portfolio for one reason or another, usually because I chose something else that day. Like my "Watch Stocks" port, I "buy" $1000 worth of these on the day I decided to NOT buy them for real then I add them to the portfolio and watch them.

3 - "xxxxx's Tips". These are stocks that have been recommended to me by friends as 'hot tips'. I "buy" $1000 worth of them on the day they're recommended then watch as they invariably underperform.

Note, in all ports, my "buys" are approximately $1000, rounded to the dollar amount that buys an even number of shares. I always use $9.95, the cost of a limit order at SureTrade as my trade cost. I've picked $1000 since it closely approximates the amount that I have found that I can regularly save and use to purchase.

Hope someone finds this useful...
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No. of Recommendations: 7

Over time I have used Gorilla/King style of investing and have enjoyed the great benefit of the model.


I too have come to this conclusion. This is off topic, but I felt the inadequacies of the Rule Maker criteria were exploited in today's RM article. If you haven't read it, it is a worthy and interesting read. TMF is selling The Gap from their RM port.

The problem I see is they overuse Gross and Net Margin to determine "the ability of a company to set rules" in an industry. The Gap fails to meet these criteria, so off it goes. Taken to its extreme, almost all of the TMF RM picks will be technology plays due to the higher margin business models.

I'll name one Rule Maker which will never be considered a true Rule Maker by TMF criteria: Wal-Mart. This retail giant will never meet the margin requirements. Yet Microsoft so easilly meets those requirements because they sell software (very high margin model).

Computers as we know them may not exist in 10 years. If the platform completely changes, where does this leave Microsoft? But Wal-Mart will still be there, this I am 9-nines certain of. There is no true competitor. K-Mart has been crushed. Target is miniscule by comparison. And now Wal-Mart is taking over (eh-hem MAKING THE RULES) an entirely new market - supermarkets.

Anyhow, the Rule Maker criteria should be able to spot Wal-Mart a country mile away. Margins should not be the criteria unless measured relative to their peers. So the Rule Maker ideal just doesn't quite do it for me. It'll get you into a lot of great tech stocks and teach you about balance sheet analysis. But you need The Gorilla Game to grasp which of these tech companies stand the best chance of taking control of an exploding industry, and therefor make the best investment choices.

That's just my take. Of course the GG will not get you into Wal-Mart neither. That is unless they start building optical networking gear.

I guess we need to adapt the gorilla game to retail investing. Anyone want to start a board?

(ducking thrown tomatoes)

DP
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So to my suggestion. Over time I have used Gorilla/King style of investing and have enjoyed the great benefit of the model. What I think is that once that fat pipe series is finished a model portfolio should be set up for all to follow.

BB has done just that. You can get the information to it at this link on T-rats board.

http://boards.fool.com/Message.asp?mid=13373899

Check it out and see if that is what you were looking for.

halon
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I think that is a very good suggestion and perhaps would even advocate (and I can't track all the boards) a board for fat pipe investing.

Agustin
(triying to lose weight)
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Anyhow, the Rule Maker criteria should be able to spot Wal-Mart a country mile away.


But WMT has been stuck in a trading for a year or maybe longer. Not much upside there.

jitterbug81
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But WMT has been stuck in a trading for a year or maybe longer. Not much upside there.

I think you missed the point. Wal-Mart has been a Rule Maker in my eyes for a long, long time. But due to its gross and net margins, it would never have been picked under this philosophy.

Here are the returns for WMT since:

1990 - 856%
1985 - 3439%
1980 - 39879%

Helluva trading range, wouldn't you say? I think that would have met your upside requirements.

So when was it obvious Wal-Mart was a national Rule Maker? I'd say by 1990 it was a no-brainer. I'd argue you could have made the call back in 1985 by comparing it against floundering KMart.

If there ever was Rule Maker in the Retail Sector, this was it. Too bad it's margins weren't as good as MSFT.

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I'd be happy to start a retail board. I don't know didly about retail investing, but it's always good to branch out knowledge...

Willing to participate...Dan, lemme know if you want to set one up.

Chris
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Helluva trading range, wouldn't you say? I think that would have met your upside requirements.

Padavona,

I was not talking 10 and 20 years ago. I believe I said about one year, in my post. Thanks anyway.
(Not buying WMT yet).

jitterbug81
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