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Knee,

Thanks for the response. I think we're on the same wavelength. Looks like we both have more questions than answers, huh.

I buy into the Gorilla Game thesis both cognitively as well as via my investments. It's the valuation thing that I continue to struggle with. There's a leap of faith that I've been taking on high valuations of the stocks I buy and hold and while its worked out well, it still keeps me thinking. What if AG changes margin requirements or bumps up interest rates to offer other opportunities to investors? How high would he go before the flow into the NASDAQ changes? How would this impact the Gorillas and Kings which are often part of the index?

The demographics of the investing population certainly is one cause of the bull market. Combine this with the birth of the Internet and on-line investing and you have a potent potion. I also believe that index funds have had an underrated impact on stock valuations. How many of us regularly dump part of our paychecks into our 401-k or 403-b into index funds which are great investments but in essence invest blindly in the pre-selected stocks of the index. It would be really interesting to see how much of the market cap of a QCOM or a GMST were due to index investing. If that index variance were broken out and accounted for separately, would metrics like P/S and P/E be more in line with historical trends? Don't know and maybe it doesn't matter but it would be interesting to see.

Well, that's enough heavy thinking for a Sunday. It's time for a run.


Akoni

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