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No. of Recommendations: 1
Gary,
If someone can guarantee that a company will go into a permanent losing position by a certain date, it will start a death rattle. However, the idea of holding on to Tweeners is that they will continue to dominate the field, in which case they will become Makers. Now, there are very few Makers with no competition, otherwise the Monopoly Status section would not make sense. So, we are looking for companies that we believe have effective competition but will end up as dominant. Once the dominance is clear, they have a greater ability to flex their muscles, so that they can reshape the finances to rebuild their financila position, which in turn leads to greater Maker status.

How long can a Maker rule? Who knows? I certainly don't. Makers will always have competitors, as others want to take the prize. Fortunes will rise and fall. But just having attained Maker staus gives them more time and money to regain the leadership than they would have if they were just running with the pack.

I personally don't invest in Tweeners, being uncomfortable with the risks, and am only just starting to look at Breakers, so it is all just theory to me. It's interesting to have this discussion, because it helps me to work out my future strategy. The main thing is to be comfortable with whatever decisions you make for yourself. One of the key factors in a Breaker is the management, if I didn't believe in them, I wouldn't have invested during the Breaker stage. That belief should, hopefully, be sustained whilst they are being Tweened, so I would hope that I could trust them to make the right decision regarding retaining funds, otherwise I wouldn't have wanted my money there either.

Make sense? Any other thoughts?

angussb.
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