Do You Have the Guts to Buy?http://www.fool.com/investing/high-growth/2008/10/11/do-you-have-the-guts-to-buy.aspx Paul Elliott
October 11, 2008
It was Christmas 1999. I was on the phone with an old pal. A few months back, he'd tipped me to a local scientist who claimed he could crack the human genome. There was an IPO. I bought in and forgot all about it.
What the heck is going on here?
Rule Breaker. I'll never forget the day I heard those two words. In December 1999, I had no idea what they meant, but these Fools were moving the market.
If you're a regular here, you may have heard that Rule Breaker investing is back. But it's probably not what you think. It's certainly not what I thought when I heard those two words on the phone.
For one thing, it's not all tech
But Rule Breakers was never all tech. ExxonMobil (NYSE: XOM ) was in the original portfolio. So was AT&T. David is still a big fan of FedEx (NYSE: FDX ) , and he insists that low-tech Starbucks is the perfect Rule Breaker.
So, what makes Starbucks a Rule Breaker? There's no second fiddle, according to David. Where's the Pepsi to Starbucks' Coke? That's what makes Starbucks a Rule Breaker. If you bought Starbucks along with David in 1998 -- I wish I had -- you're one, too.
So just what makes a Rule Breaker investor?
This is important. After all, great growth companies rarely look "cheap" to value-oriented investors -- witness Adobe Systems (Nasdaq: ADBE ) , king of the PDF and a 10-bagger. Like David says, you had to pay up for a company like Adobe in