Meaning & origin

Cash cow

  • 2 sources
  • 3 alternate wordings
  • 3 usage examples
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Meaning

Business jargon for a product, division or asset that reliably generates more cash than it costs to maintain, its surplus typically diverted to fund riskier or faster-growing ventures; more loosely, any dependable source of easy income that is exploited rather than developed. The extended sense is common outside business pages, in sport, entertainment and government. Neutral-to-cynical business register; the milking metaphor implies extraction from an asset past its growth phase. Regional use: General English.

Origin

The metaphor is a dairy cow that needs little further investment yet keeps producing milk that can be drawn off, so a mature business can be 'milked'. The business sense was fixed by the Boston Consulting Group's growth-share matrix: sketched by BCG's Alan Zakon and popularized by founder Bruce Henderson in his 1970 Perspectives essay 'The Product Portfolio', it sorted units into stars, question marks, dogs and cash cows - high-market-share operations in slow-growing markets to be milked continuously with minimal investment. Merriam-Webster dates the compound's first known use to 1972 and records both the portfolio sense and the generalized 'reliable source of money' sense, which now often carries a hint that the owner is exploiting a captive asset rather than earning it.

Research Sources

References used to check this entry’s meaning, history, or documented forms.

  1. Growth-share matrix Wikipedia
  2. Cash cow - definition Merriam-Webster

Variants

  • a real cash cow
  • cash cows
  • milking the cash cow

Usage Examples

  • The insurance division became the group's cash cow, quietly funding every speculative side project.
  • Executives admitted that the printing business was now a cash cow and would receive no further investment.
  • That single licensing deal turned an old advertising jingle into a cash cow for two retired musicians.

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