Abso-bloody-lutely matey. Thats the only way clubs like ours can survive.
When i talked about 'investing in the squad' I was meaning the kind of thing that jim McLean was a master at. Like getting some kid from a lower division team, signing him up on a 7 year contract and punting him on. That is the kind of thing that only the richest can do. (Man U, Ronaldo) Remember people saying Fergie had accidentally signed the wrong Ronaldo ?? :-)
Players that we've brought up and brought through should be on decent length contracts so that we can get the best out of them and still get a decent fee. Unfortunately, these days, agents are getting in the heads of young players and advising them against long contracts with the promise of big moves and big signing fees. As you say, if we allow these kids to slip away, that is just incompetance.