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To: Bruce Brown who wrote (24724)	5/14/2000 11:43:00 AM
From: Mike Buckley	Respond to of 54805

Bruce, Go easy on me Mike, I'm simply providing a link to a thought provoking post. LOL! To remind others here, forums such as SI and the Fool want people to provide links to their forum. What they don't want and rightfully so is for people to copy and paste stuff from their forum into another forum. Regardless, Bruce's comment is about an entirely different matter that you can appreciate only if you've been reading the Fool's Gorilla Game folder. Back to Cisco. That's a fascinating study. I've never considered looking at growth of shareholders' equity but it makes a lot of sense, especially if it's dissimilar to growth of earnings. However, for the same reason it's important that we look at earnings per share it's equally important that we examine equity per share instead of total equity. There was one part of that piece I didn't understand, the stuff about unrecognized gains. If an investment is listed in a note as an unrecognized gain, does that mean it's not part of the shareholders' equity listed on the balance sheet? --Mike Buckley

To: Bruce Brown who wrote (24724)	5/16/2000 9:27:00 PM
From: StockHawk	Read Replies (1) \| Respond to of 54805

>>Cisco is not overvalued from an accounting point of view:<< Bruce, that was an excellent post you alerted us to. The contention that wealth creation at CSCO is greater than reported income is something to look into. However, it is important to note that corporations do keep two sets of books - one which follows GAAP and one which follows IRS rules. Reducing taxible income while reporting higher book income is not unusual. Reporting lower than necessary book income would be unusual. StockHawk