A Huffalump did his business here...: Ways a company would reward its investors once it is mature

Saturday, August 19, 2006

Ways a company would reward its investors once it is mature

When I read this i just included it as an update to an earlier post.

But on further reading, I though it represented some ways a company might reward its investors once it is mature.


Different company have different ways. Cash is normally seen as opportunity and if it is not used it is a bad reflection of the management (i.e. the management has ran out of idea...)

But what if the company is saturated, i.e. it can no longer grow? Now some companies can keep growing (especially investment holdings, insurance), but what about product based companies?

Lets not talk about generic ones or ones that are still trying to find their killer app, but those that are focused on one product.

Like Microsoft , I have always stated that MS is an oddity in business, the cost is low and the price is high =) I have also stated that in many why as much as people are disparaging google for being a one trick pony, MS has been the big white elephant pony wuzzle for all time =D How else can i believe that open source will take over from Windows ;) Windows is fast running out of tricks. And any trick it can do is either done already or can be easily replicated. MS knows this. Hence the feature addons year after year. Buying of companies to incorporate technology. But it gets to a point where there is nothing to add. MS is looking for the next frontier. It has looked at video games, PDAs, IM, search and recently medical equipment, MP3/entertainment software - Zune.

Which one has it gained the dominance it had with the desktop?

Granted it is strong.


Many companies are strong =)


Microsoft is strong and matured.

This article gave some good examples of how such companies may reward you if you invested in them.

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