Page 29 - Portfolio Analysis
P. 29
FIGURE 14
LOW
STAR
CASH GENERATED 90
MGR CASH USED 100 HIGH
- 10
MD
CASH COWS
As Stars mature they become low-growth, high-share operations or Cash
Cows, where the opportunities for reinvestment are not sufficient to absorb
the cash generated; hence such businesses are the principal source of
new investment funds.