Credit: Shutterstock photoGreat companies know the key to future success lies in the steps you take today.
These companies dole out massive amounts of cash to their engineering teams to develop cutting-edge products that will provide for sales and profit growth in the years to come.
This strategy was the cornerstone for Microsoft (Nasdaq: MSFT ) in the 1980s, Cisco Systems (Nasdaq: CSCO ) in the 1990s and Apple (Nasdaq: AAPL ) in the most recent decade.
But not all of this spending on research and development (R&D) pays off. Each of these high-tech companies has also had considerable flops. That's alright with management, though, because they know that taking risks is what yields success. And R&D efforts must have the freedom to aim high in search of new blockbuster products.
-- David Sterman
Disclosure: Neither David Sterman nor StreetAuthority, LLC hold positions in any securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
