Common Stocks and Uncommon Profits – Corporate Research & Development

“Therefore, even the most profitable of research projects is pretty sure to be a financial drain before it eventually adds to the stockholder’s profit.  But if the cost of poorly organized research is both high and hard to detect, the cost of too little research may be even higher.” p. 38

“However, other companies will be alert to the trends and will maneuver to make enormous sales gains from such awareness.  The managements of certain of such companies may continue to maintain the highest standards of efficiency in handling their day-to-day operations while using equally good judgment in keeping ahead of the field on these matters affecting the long-range future.  Their fortunate stockholders, rather than the proverbial meek, may well inherit the earth.” p. 38

“Instead, regardless of size, what really counts is a management having both a determination to attain further important growth and an ability to bring its plans to completion.  The past gives us a further clue that this growth is often associated with knowing how to organize research in the various fields of the natural sciences so as to bring to market economically worthwhile and usually interrelated product lines.  It makes clear to us that a general characteristic of such companies is a management that does not let its preoccupation with long-range planning prevent it from exerting constant vigilance in performing the day-to-day tasks of ordinary business outstandingly well.” p.43

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