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Technology Stocks : How high will Microsoft fly?
MSFT 481.78+0.2%2:08 PM EST

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To: Reginald Middleton who wrote (8676)6/25/1998 7:06:00 PM
From: X-Ray Man  Read Replies (1) of 74651
 
R&D is not an investment. Investments are listed as assets after
they are expensed. R&D is an expense. Same with marketing. All
"expenses" of a business are "investments" in its future, but that
doesn't mean they don't "cost". The difference is that the forwarded
earnings after expensed are really now "assets" on the books to be
drawn on later when expenses associated with maintenance of those
assets must be paid, like support costs.

Long term, the current accounting system is giving you the right
numbers, at worst just shifted a year. Don't substitute one illusion
with another delusion.
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