Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Excellent post, Scott (Tinker).

JDS Uniphase is in royalty game as we know it sitting on the throne as the King. I am comfortable holding a stock in that position at this early point in the technology adoption life cycle. Likewise, I am comfortable holding another King - EMC - as well, but for the growth reaons in the data storage needs that the Internet has created.

Plus the value chain really doesn't care if a component for the fiber-optic pipe is made by JDSU or by Hank's Fiber Optics 'R Us. As long as the thing works.

I enjoyed a good laugh on that one. The huge barriers to entry, luckily, will prevent Hank from ramping up and being too much of a threat. Hence, my earlier moat around the castle comment. In this growth phase of the adoption life cycle, several players will perform quite well and investors need to be keen on watching the sector. As Tinker said, I will be on the lookout for the point in the life cycle where the growth begins to level off and slow and evaluate at that time my decision on whether or not to sell and move on to a faster growing investment.

BB

Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.