He's pretty much describing why Microsoft has been a great investment<p>That's why large information technology companies have profit margins of 20+% and seem immune to business cycles and macro factors. They just keep printing cash even as other sectors ebb and flow. Microsoft, google, facebook, have huge profit margins and have been good investments.<p><i>It’s a sunk cost. If your investment doesn’t pan out, you don’t have physical assets like machinery that you can sell off to recoup some of your money.</i><p>But you can sell intellectual property.