Good Companies Versus Good Investments
Take Cisco Systems as an example. In April 2000, Cisco qualified as a good company by many popular standards. As a supplier of data networking products for the Internet, the firm was logging strong sales and demonstrating real earnings power, as well. In 1999, Cisco posted $15 billion in revenue and $2.5 billion in net income. Even as many technology companies were fading fast, Cisco’s dominant market share in an important industry meant the firm’s future prospects were bright.
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