How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 483.03

+0.5%

Dec 5 3:59 PM EST

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To: Reginald Middleton who wrote (8850)	7/1/1998 3:05:00 PM
From: johnd	Read Replies (1) of 74651

Reginald, In one of your earlier posting you marketing spending is an investment and should be added to the bottom line. That is the first time I heard that argument. I always believed R&D spending adds to growth flow and is a contributor to future profit from a future product. Why does marketing spending be considered an investment. How is it different from Admin cost. That way everything is an investment, includig the money spent on cost of good sold. If your arguemnt is that today's marketing spending would produce tomorrows large revenues, then I see your arguemnt, but don't like it. The reason for that is that if MSFT is a real monopoly then it shold generate max revenues, profit and increase in equity with the least possible marketing spending. johnd

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