I just started reading the new MF book. After reading the Gardner boys first test for a rule breaker --- Top dog, first comer in an important and emerging industry (sorry if that's not verbatim as I am writing this out post off the top of my head). In any case, I believe CSCO (obviously a rule maker in data networking)should also be considered a RB. The important and emerging industry? Voice over IP (CEO John Chambers is talking about revolutionizing the "telephone" industry).First comer? YesTop Dog? TBD (beween CSCO and LU -- I give the nod to CSCO since it knows data networking.)Thus, I would consider CSCO a very attractive RB, as it has already demonstrated its ability to become a RM.
I sort of agree with you. A rule maker can continueto break rules. In fact by virtue of being in a rulemaker position, it might even be easier for it to breakestablished rules in other industries. So I guess instead of rigidly classifying a company into either of these two categories maybe one should considera company as some combination of the two... if its both then i guess its in a real good position.I don't know what exactly the book has to say about this though...
A rule maker can continue to break rules.I was thinking about this last weekend in regard to Intel. They are certainly a Rule Maker by setting the standard for desktop computing chip speed, but they continue to break their own "rule" every time they develop a faster and better chip. Trevar
<<I was thinking about this last weekend in regard to Intel. They are certainly a Rule Maker by settingthe standard for desktop computing chip speed, but they continue to break their own "rule" every timethey develop a faster and better chip.>>Yep, except for, in my opinion, in the future, when we talk about "speed" with regards to computers, we will be talking bandwith and fat pipes. The better all-around sure-thing is theKid..... CSCO is definitely making and breaking all sorts of rules out there.Not that Intel's not a great investment opportunity (I don't have any now - but I used to - I sold and put it into CSCO and MSFT), but I see a problem with decreasing marginal utility to consumers upgrading chip speed time and time again. At some point, I think we'll reach a wall where chip speed won't matter anymore, as long as broadband access is cheap and readily available (and that is not far away at all - be it ASDL or cable access). I hope Intel had a back-up plan, then.... It won't be quite so easy for them to break the rules at that point, though your point is certainly accurate right now.Ah, but this is all only my small opinion, anyway, yes? :-)Best,Lou
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