Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: gdichaz who wrote (50467)	2/23/2002 12:22:51 PM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 54805

>>"show me the money" attitude<< Trouble is, QUALCOMM is showing the positive cash flow generated by its various segments (and also the cash drain from investments). One of the key issues that investors ignore is the very issue that keeps Warren Buffett from investing in high technology. It is hard to calculate the true cost of being at the cutting edge. We know what Q is doing about it, and we have seen some of those costs in getting a foot in the door in various locations where wireless use is expanding. We also know the huge investment it takes in terms of skilled personnel to create the new patents and resulting products that keep the firm a step or so ahead of the competition. What we don't know is how much the efforts of competitors to gloss over the differences in technology cost. So far whatever that cost is is higher than what had been anticipated earlier. I still think that even if some portfolio managers were shown all the money, they would still go with the safe and sure. That's the safe way of getting approval from your peers. The problem is less what the company shows and more what institutional investors THINK. Art