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I see people repeat this but it's not true. The stock market heavily rewards investing in R&D if investors think the research is going somewhere. Biotech comp
by gozur88 11y ago
I see people repeat this but it's not true. The stock market heavily rewards investing in R&D if investors think the research is going somewhere. Biotech companies are a good example.
- mdorazio 11y agoTesla is another. Their expected future value is based almost exclusively on R&D, and the stock is massively overvalued in comparison to other manufacturers.
- Zigurd 11y agoIt might be more accurate to say: Boards reward management for the appearance of producing results in 3 months, and there are a lot of bad C-suite managers who are happy to do so, at the expense of employees and long-term prospects, as long as the compensation is high enough.