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I made this post over at Silicon Investor on the G&K thread because it is just as relevant here, I will post it.

RE: Gorillas outside of high technology....

It is April Fool's day, but I'm not going to use the opportunity to pull a prank.

But in the end I guess it is Frank's and the elder's call.


Not that the issue has been void of attention in the past 24 hours, but I believe it goes far beyond the elder's call. Otherwise, it will be a constant effort of 'maintenance' to keep on topic. It goes to the core of what gorilla gaming in high technology is all about. A highly specialized method of understanding high technology so that people like us (retail investors) can successfully invest in the space using the criteria so well presented by Moore/Kippola/Johnson in the two versions of The Gorilla Game. Combine this with the original intent of this specific thread and we owe it to ourselves to respect both the intent of the thread and the intent of gorilla gaming.

If we sat down and chatted with the combined industry knowledge and talent of Tom Kippola, Paul Johnson and Geoff Moore in terms of gorilla gaming and asked them "Hey, guys. We love your stuff. Okay if we lop it off onto other fields like biotechnology?" What do you think their answers would be? As has been pointed out, many of those answers are in the manual as it stands.

Many of us do invest in companies that are far removed from high technology. The Gorilla Game applies to the portion of our portfolio that is dedicated to high technology. Do I apply gorilla game criteria when I am looking in other areas like financial stocks, brokerage stocks, retail stocks, recreation stocks, drug stocks, health care stocks, etc...? No way. There are plenty of fundamental methods of investing in those categories that are efficient and time tested and proven. Likewise, as a growth investor, when I am looking for companies outside of technology I have very strict criteria that I apply and the results are very effective.

Investing is complicated enough as it is. There are many methods and fundamental criteria for all segments of the market place. Technology investing is one of the more difficult areas to grasp. It may not look like it to those who have been enjoying the 1995 to 2000 run when a few seeds easily turned into acres and acres of rich crop. However, those of us who have been investing a lot longer than that can attest to the fact that this has been an 'abnormal' run and there indeed will be a day when appreciation of the specific criteria being applied to specific areas will come to the fore with a vengeance. Moore/Kippola/Johnson put together a strict method to help several groups of people - one being we retail investors - when it comes to investing money in high technology. That 'game' is, in and of itself, difficult enough to grasp. Not taking the time to focus on it and where it should be applied has the potential to end in a very unpleasant manner.

Likewise, if a retail investor is going to take the time to invest in growth stocks outside of technology, REIT's, fixed income, junk bonds, financial stocks, industrials or whatever. Take the time to learn and apply proven criteria to those spaces as well. If one doesn't have the time and attempts to cut corners, then I fear using a professional to make the decisions would be a much wiser move.

It has never been said that one must invest only in technology or only in another field. However, as investors, we have to understand and use the best criteria we know is available to 'master' each of those investing fields. It is also not easy to 'master' more than a few fields.

Although I am no 'elder', I will certainly support the focus of gorilla gaming on the G&K thread. I know exactly where to go to discuss and polish up my criteria for investing in companies outside of high technology. If one hasn't taken the time to find these places for discussion, I would encourage one to look for them. Investing is not easy. It takes time to learn, develop and implement strategies over the years. Mistakes are made along the way which we use to focus on the basics in hopes that we recover.

Biotechnology is such a huge field and there are so many great discussion groups and threads devoted entirely to the subject, that I would encourage those interested to seek those locations out for focus and discussion. We've got plenty of work on this thread to keep our hands more than full in the high technology field for years and years to come.

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