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BooknewsTwo venture capitalists and a marketing consultant, all specializing in hi-tech companies, proffer a somewhat counter-intuitive approach to investing in hi-tech industries. After finding a market that is in transition into "hypergrowth" (such as consumer software in the mid 80's), and after buying a basket of stocks representing companies in that market, their advice is to wait...until one company starts to build a lead. Then sell all the monkey stocks in the basket and buy more of that gorilla, which should grow to dominate the market and increase in stock price by many fold. The authors say this strategy of consolidation (which opposes the well known investor maxim to "Diversify! Diversify!") actually reduces risk because hi-tech markets tend to be dominated by one Gorilla while competitors monkey around the margins.
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