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<<By definition, gorilla gaming is LTB&H once consolidation of the portfolio takes place.>>

Until the fundamentals change. But creating the portfolio in the first place requires that one buy the stocks under consideration, and Moore has acknowledged that even gorillas can be temporarily overvalued. Which is why he recommended to the email group that they let the market settle for a few months before jumping back in. That may be a crude form of timing, but it's timing nonetheless.


<<It's not an opinion -- it's a fact -- that the taxable account using anything other than the longest of long-term strategies has to outperform on a pre-tax basis the LTB&H strategy in order to achieve the same after-tax results.>>

Naturally. But much depends on the gain one has - assuming one has a gain - and on his tax bracket. One must also consider the inflation costs and opportunity costs to one's portfolio if he is holding stocks which are below his purchase price.

<<It's my opinion that people who don't understand the magnitude of overperformance required to do that will be mislead by the generalized statements you're making.>>

Undoubtedly, if the statements are taken at face value. I'm not concerned with teaching anybody how to time the market or how to time entry into a stock on this board. That would be about as inappropriate as inappropriate gets. But I've been on the lookout for gorillas for years and thought Moore's book was important. And I consider statements such as "gorillas are always undervalued" and "no price is too high to pay for a gorilla" to be pretty general themselves. When one couples such statements with all the "likely tos" and "might bes" and "ought tos" that crop up in posts, then one ought to at least consider whether the price he's being expected to pay for a given stock is fully justified.

Investing now is not what it was ten years ago or even five years ago. "Investors" are no longer willing to wait for earnings, or even the prospect of earnings. Thus prices are driven up to levels that can't possibly be justified except in reference to a timeframe that is so far off into the future that the entire technological landscape may be unrecognizable. Similarly, GGers are more and more eager to get in "early" and buy what may only be potential gorillas - and perhaps not gorillas at all - long before they've shown the requisite characteristics of a gorilla. Granted, the basket approach is supposed to address some of these problems, but one must be reasonably sure that the stocks included are in fact candidates for the basket. And unless the stock is selling at an extraordinarily low price, the less information he has, the more risk he assumes.

I have no interest in rewriting Gorilla Gaming. I think GG is just great. But when I see newbies begin to take on that religious fervor that persuades them to take risks that they perhaps have not carefully considered, I'll raise my little yellow flag and suggest that they perhaps should slow down and think a bit more carefully about what they're doing. Sounds patronizing, I know, but I'm sure that I'm on more than one Ignore list.
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