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I just finished reading "Rule Breakers, Rule Makers" and it seems I'm missing something. Tom Gardner specifically states that for a company to be a RM (page 165 - hardcover edition) it must have sales > $1bn. Yahoo's sales were just $566M.

How does it qualify for the RM portfolio?


1piranha,

Your question is a common one we get here on the Rule Maker boards about the portfolio. When Yahoo was purchased back in early 1999, it was done so with the understanding that it wasn't a "full fledged" Rule Maker, but more of a Tweener with excellent prospects. For more information on why the decision was made to purchase a stock that doesn't exactly fit the RM criteria, check out the YHOO buy report at the following link:

http://www.fool.com/portfolios/RuleMaker/Trades/RuleMakerTrade_yhoo990216a.htm

Hope this helps.

the LanceMan
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