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Re: the big guy post# 199100

Friday, 10/05/2012 7:24:55 PM

Friday, October 05, 2012 7:24:55 PM

Post# of 312016
Sunk costs should always be ignored when an investor makes an investment decision based on a company projected cash flow going forward.

Investors in JBII today get all the benefits of 3 years worth of trial and error expenses, capital investments, R&D, etc without any of those expenses reoccuring. It makes no difference if it cost JBII $500 million, $50 million, $5 million, or 5 cents to get to this point.

Explained nicely here:

http://stevenclark.com.au/2011/01/02/sunk-costs-are-irrelevant-to-financial-decisions

Raw

Research & analysis on some of my favorite stocks is located on the sticky note on the SwingTrade board.

http://investorshub.advfn.com/boards/board.aspx?board_id=1781