Gorilla and King Portfolio Candidates Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Seeker of Truth who wrote (33376)	10/19/2000 2:03:24 PM
From: EnricoPalazzo	Read Replies (1) of 54805

Investment in startups is a big business for Microsoft. I think profits in that sector should have the same place as "operating" profits Yes and No. Three good reasons to like profits from start-up investments: -investing cash flow is still cash flow -investing in start-ups is a sustainable part of our business model (and Intel's) -we have a core competency in making such investments, by virtue of our competitive position. OK, the last two are sort of the same... Anyway, there are some drawbacks: -It's very easy to manipulate these numbers to smooth out quarterly results. -Profiting from shrewd investments is a sustainable part of our business model only because of our strong competitive position. This would imply that the really important issue is our ability to sustain this competitive position going forward, not our ability to milk it in the short term. Seen in this light, weak "operating" cash flow (as usually defined) is far more important than strong investing cash flow. This last drawback is pretty important, IMO. Just my opinion, not Microsoft's... ardethan

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next