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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Charlie Smith who wrote (24675)	1/22/2004 4:04:23 PM
From: Dave	Read Replies (2) \| Respond to of 60323

That's incorrect Capital is not "free" and neither is capital that is traded on an exchange. When an investor buys a security, there is a required rate of return associated with that security. If the required rate of return is 20% per annum and the company is growing net income by 10% per annum, the company is "destroying value" by growth. Think about it this way. Would you borrow money on your credit card at 20% to invest in a "security" that only provides a 10% return? I would hope not