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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (15830)	2/28/2002 2:44:27 PM
From: Maurice Winn	Read Replies (3) \| Respond to of 74559

<Speaking of the circle of life, why doesn't Qualcomm pay cash dividends to the shareholders? > They did with Leap Wireless, which was a taxable dividend. But apart from that, we are now spending $400 million a year on research and development. QUALCOMM has rapidly increased R&D budgets over the years as income has allowed. CDMA is not yet a mature product, nor is mobile cyberspace. QUALCOMM is still developing them. The stages of wealth are: Learn Work Save Invest Spend QUALCOMM is still learning, while working [producing OmniTRACS, CDMA ASICs, collecting royalties from others also selling CDMA stuff], saving the money they get, investing in further development and after the cow has fully grown, then we start milking it. First, get a calf, then rear it, then get a bull, then get another calf, leave the milk for the new calf [if you take it yourself, that will be the end of development], rinse, repeat. When you have a herd of cows, then eat the bull, build a milking shed, sell the milk and live happily ever after. After a couple of years, some of the calves will be bulls and the process can continue. Eat the spare bulls. Paying dividends now would be like selling the milk from the first cow. The taxation people would also want a piece of the action! Mqurice