Book Summary
The Gorilla Game: An Investor’s Guide to Picking Winners in High Technology by Geoffrey A. Moore is a comprehensive guide that teaches readers how to identify and invest in successful high tech companies.
Book Genre
Non-fiction, business, investing
Main Topic
The book is focused on helping investors identify and invest in the “gorillas” of the high tech industry, which are the dominant players that capture the majority of market share and profits.
Key Ideas
- Technology companies that can establish themselves as gorillas in their market have the potential for significant growth and long-term success.
- Gorilla companies are characterized by superior products, strong customer loyalty, and high barriers to entry for competitors.
- Investors must understand the unique dynamics of the high tech industry and use a strategic investment approach to identify and invest in gorillas.
- Timing is crucial when investing in high tech companies, and investors must be aware of the critical tipping points that can push a company to success or failure.
- The high tech industry is constantly evolving, and investors must stay updated and adaptable in their approach.
Main Parts of the Book
- Introduction: Provides an overview of the gorilla game and sets the foundation for the rest of the book.
- Part One: Explains the concept of gorilla companies and the characteristics that make them successful, such as technological innovation and market leadership.
- Part Two: Introduces the strategic investment approach, which involves understanding the market dynamics, identifying gorilla candidates, and assessing the company’s competitive position.
- Part Three: Discusses the different stages of a high tech company’s growth, and how investors can take advantage of various tipping points to make successful investment decisions.
- Part Four: Provides practical guidance for investors, including advice on portfolio management, investing in specific industries, and recognizing when to exit an investment.
- Conclusion: Wraps up the book and emphasizes the importance of adapting to the changing high tech landscape.
Key Takeaways
- The high tech industry is highly competitive, but successful companies can become gorillas and dominate their market.
- Investors must understand the unique dynamics of the high tech industry and use a strategic investment approach to identify and invest in gorillas.
- Timing is crucial when investing in high tech companies, and investors must stay updated and adaptable in their approach.
- Evaluating a company’s competitive position and potential for future success is essential in making sound investment decisions.
- High tech investments should be continuously monitored, and investors should be ready to exit if necessary.
Author’s Background and Qualifications
Geoffrey A. Moore is an author, speaker, and consultant who has extensive experience in the high tech industry. He has served as a venture partner at Mohr Davidow Ventures and a senior advisor at McKinsey & Company, and he has consulted with numerous high tech companies throughout his career.
Target Audience
The book is primarily geared towards individual investors and financial professionals who want to understand and succeed in the fast-paced and ever-changing world of high tech investing.
Publisher and First Publication Date
The Gorilla Game was first published in 1998 by HarperCollins. The fourth edition, released in 2021, is published by HarperBusiness.