There is no long-term debt on the balance sheet. Qualitatively, we look for Rule Maker to have a global brand name, preferably in a repeat-purchase business. We also look for strong historical performance and compelling future prospects. In Microsoft's case, several of its major products, including Windows, Excel, Word, PowerPoint, and Access, are completely identified by their brand name. The historical performance has been outstanding.
Future prospects are bright.
Arguably, Microsoft is not in a repeat-purchase business. The software is normally only purchased every two to three years, and some people are still quite happy with Microsoft software that they purchased five or more years ago. However, the product is used very frequently, often daily. This provides some, though not all, of the advantages of a repeat purchase business. Additionally, the Internet will present opportunities to distribute products directly through to consumers every day, week, month, and year.