Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 3
There seems to be some confusion on this board about gorilla-hood, in particular, regarding Qualcomm.

Mr Hunt,

I appreciate that you took a different spin on this and questioned the status quo. You shook things up a bit, and made some of us look at things from another perspective.

If I might try and restate your premise - If we look analytically at wireless networks as an up-and-coming discontinuous innovation, then we could determine that, as a sector, it is still in the chasm. So far there is not a complete value chain, no niche markets have been penetrated, and no pragmatist market has yet generated a tornado. So there can be no clear-cut gorillas.

For wireless networks.

I called wireless networks a “sector” because it will take a variety of enabling technologies to put together the infrastructure necessary to make wireless networks a reality. The companies that provide the enabling technologies could become the gorillas of their respective pieces of the puzzle. Ie: Microsoft is not the gorilla of the desktop PC. It is clearly the gorilla of the desktop PC operating system. It takes another gorilla - Intel - to power the OS, as well as all the princes, chimps and monkeys required to provide the box it all goes in.

CDMA, and it's future higher bandwidth siblings, seem to be the clear winners for the protocol on which these wireless networks will run. Qualcom is clearly the gorilla of this piece of the puzzle. Others will build the handsets, chipsets, towers, PDA applications, and offer content - perhaps resulting in other gorilla or king games.

I am relatively new to investing. I looked for sectors with discontinuous innovations were early in the technology adoption lifecycle, and decided to put my money into wireless networks among other areas. I bought QCOM because it is the undisputed gorilla of the technology that I expect to carry a lion's share of the data. I'm still looking for other gorilla candidates in this sector, but I only see mostly potential princes of kingless technologies.

So far Qualcomm has been one of my worst performers (Only Microsoft and Amgen are worst), but I have sunk a relatively large percentage of my portfolio in Qualcom, and will buy more this month, as I expect it to keep a roof over my head and my belly full well into my late years.

I hope,

Bill
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.