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No. of Recommendations: 7

"The Gorilla Game" is an excellent book that presents a readily understandable model which purports to explain why some companies have come to domninate in the high tek industry. The GAP CAP model is just that, a model. We humans have a very limited attention span and a very limited ability to maintain more than six(6) discrete facts in mental view at a time. A picture gives us a memory hook on which to recall all kinds of details. The GAP CAP model lets us fool ourselves into a belief that we can "see" why something is the way it is. By looking closly at the characteristics of the companies in high tek that have acheived "Gorilla" status, we can read history into book form to show how the "Gorilla" had to come to be. Well the GAP CAP model fits the history and serves well to educate and amuse.

Now, what are you going to do with the model? Will it perform as a scientific hypothesis to predict the outcome of the next discontinious innovation cycle in high tek? Well, maybe and maybe not. Is the model a specific subset of factors that only apply to the Silicon-Electrical-Signal-Processing-Computer-Telecommunications-Internet-Hardware-Software industries or does the GAP CAP model have a more generalized application?

As I understand the book, it outlines three strategies for the investor:
1. Buy a basket of stocks and sort the winners(Gorillas) from the losers over time.
2. Place your bets just as the dust settles on a few clear winners(Gorillas, Kings, Princes) as the Tornado disipates.
3. Buy only clearly dominate (Gorillas) after they have entered the appreciation phase of expanded CAP.

What the hell is specific to high tek about that advice and the GAP CAP model?

RANT...missing convergence and generalization of a model is a sure way to miss out on learning and on making money.

The term technology is not limited. Anything that is designed, produced, transferred, utilized and applied is a technological product. The fact is folks, technological innovation has no pre-existing constraints other than the limitations imposed by the level of advancements of science in any of the areas of study or buckets that we have defined.

What I am really going on about here is elitism and blindering. If the Gorilla group wants to get starch shirty about pure High Tek and only focus on High Tek, then what the hell is High Tek? Silicon, Software, Computers, Cell Phones, Supercondutor Filters, SAW Filters, Diodes, Transistors, Chips, Photo-optics, satellites, narrow band spectrum, broadband spread spectrum, gobal positioning sats, etc? or is it really the ideas that each of these innovations embody?

The Gorilla Game is a set of ideas that kind of work to explain kind of how a set of industries arrived at where they is right now, and that is subject to changing constantly.

Convergence, evolve or die, revolution overthow of the old, reinstatement of the old/new. In My Not So Humble Opinion biological understanding and innovation will stand on the shoulders of High Tek and reach down and jerk it up by the ears into an entirely new set of rules and on to a new playing field.

The Gorilla Game applies to discontinious innovation and a model that can be used to access where in a life cycle that the industry and specific companies are positioned.

I think Bio Tek and High Tek are gonna get slammed together in a major way. Models will flow freely back and forth between the two Teks untill the ideas that get used will sound the same. The similarities between the two Teks are much much greater than their differences.

This is getting way long. Hold that similarites thought.

By the way, I think the Bio Tekies and the High Tekies ought to be playing in the same sand box.

Think The Best Thoughts


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