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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (51119)	4/25/2002 4:32:38 PM
From: tinkershaw	Read Replies (1) \| Respond to of 54805

AOL bought a real company, and paid for it with the shares of their own UnReal company. If AOL is an unreal company, I need to know the definition of a "real" company. AOL has 34 million subscribers paying what $23 a month x 12 = $276 a year x 34 million = or over $9 billion a year in monthly subscription fees alone + advertising + coimmerce share + whatever else they do, and is one of the great cash generating machines of our time. But I do agree with you on QCOM. They spent some cash, and not just shares. Still, my point is valid, as the lost cash is already deducted from the balance sheet, it is just no longer there and already accounted for. The Goodwill expense doesn't change the matter. But yes, QCOM has made some investing mistakes. But then again so has Time Warner. Maybe it is just a legend, but the story I have been told is that Time turned down a young executives recommendation that they invest in AOL in AOL's early days. All it takes is one successful investment. So I don't think I'd call for QCOM to quit making strategic investments. I would try to learn from past mistakes and make better strategic investments going forward. Tinker