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.
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