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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: hueyone who wrote (58397)	3/11/2002 6:43:13 PM
From: RetiredNow	Read Replies (3) \| Respond to of 77400

Because you are looking at a single company. The key is to look at the macro picture, not the micro. The underlying premise of my argument is that increasing productivity per headcount increases the total economic value generated in our economy. The S&P500 is one proxy for the economic value of our economy. So sure a particular industry may attract so much competition that $10 divided by a thousand makes for less individual profitability. But the whole economic pie is bigger than when you had $5 of value divided by 10 competitors. So that's the idea behind productivity lead growth. You increase the overall economic pie, which leads to higher PEs over the long term.