Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 301.11

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Jan 9 9:30 AM EST

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To: Cary Salsberg who wrote (52828)	9/21/2001 4:30:36 PM
From: Sam Citron	Read Replies (1) of 70976

True. I suppose that the equips benefit from the short life cycles of their products much more than the semis. If I have any contention, I suppose it is that obsolescence is a key element in defining tech innovation. Innovation tends to make the previous process or technology obsolete. That is what is meant by the "bleeding edge" of tech. As investors we must try to evaluate the sustainability of competitive advantage. My reading of Warren Buffett indicates that the main reason he has abstained from tech investing is his opinion of the inherent fragility of competitive advantage in an industry that is so determined by innovation. It is easier for him to evaluate the Coca Cola franchise than Intel franchise. But as you know, Moore's law does not apply to Coke, only economies of scale. It has been said that a result of Moore's Law and Metcalfe's Law is "There will be no more sustainable competitive advantages, only temporary ones." mgt.smsu.edu Any thoughts?

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