Close X Cookies are necessary for the proper functioning of By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...

Can People or Corporations Have Too Much Cash?

IMG Auteur
Published : February 15th, 2013
325 words - Reading time : 0 - 1 minutes
( 1 vote, 5/5 )
Print article
  Article Comments Comment this article Rating All Articles  
Our Newsletter...

Is it possible to have too much cash for your own good?

I believe the average 7th grader would easily recognize the inherent absurdity of such a question. However, the average economic writer does not understand what the average 7th grader does.

For example, please consider
Apple isn't only company with too much cash on CNN Money by author Paul La Monica.

Issuing preferred shares that pay a big dividend may not be the best use of Apple's more than $137 billion of cash and liquid investments. But hedge fund manager and Apple shareholder David Einhorn, who is pushing the maker of iEverything to reward investors with a new class of high-yielding stock, has a point.

Apple should be doing something more productive with its more than $137 billion in cash. Did I mention that Apple (AAPL) has more than $137 billion in cash?

And it's not alone. Several leaders in the tech and pharmaceutical industries are hoarding cash. ....

Mercy Me

Mercy! Corporations have too much cash! And they are hoarding it!

My Goodness. It's no wonder their stocks are doing poorly. Why everyone knows making money is bad business and spending money isn't.

Yes readers, this is the way economic writers on mainstream media think.

Although I am not opposed to higher dividend yields, I am also not opposed to the concept of waiting for better opportunities.

Recall that
Microsoft bid $44.6 billion for Yahoo in 2008. Microsoft's offer was over $30 a share. The current price, after a huge rally is $21.

But No! Heaven forbid corporations "hoard cash". La Monica wants corporations to do something with their cash now.

The fact is the S&P just had a rally over 100%. Stocks are likely to correct (and hard). Buying companies at lofty prices is a fool's game, and I commend Apple for not doing it.

Mike "Mish" Shedlock

"Wine Country" Economic Conference Hosted By Mish
Click on Image to Learn More

<< Previous article
Rate : Average :5 (1 vote)
>> Next article
IMG Auteur
Mish 13 abonnés
Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. He writes a global economics blog which has commentary 5-7 times a week. He also writes for the Daily Reckoning, Whiskey & Gunpowder, and has over 80 magazine and book cover credits. Visit
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
06 OctS W.
Good Call. I am saying the same on nearly all his articles. To wit, he has been and remains totally wrong about the PM's for years.
05 Octovertheedge1
"To wit, the “sixth sigma” similarity of Tuesday, Wednesday and Thursday’s silver and “Dow Jones Propaganda Average” charts." When you tro...
Not Enough Gold To Pay All Holde...
03 OctDirk
Have a look at this
Another Case of Market Manipulat...
02 OctDirk
I have studied manipulation by central banks and cannot find any strong evidence that there is manipulation.
Gold and Silver Update
29 Sepjustatrader
Hi Florian, good analysis. But don't you think have a stop at 1120 would be detrimental to the longer term upside bias? It is a great level of supp...
Congress and the Fed Refuse to L...
29 Sepsonora691
Great idea!! Audit the Fed, and while we're at it, let's get someone to audit the gold vaults in Fort Knox and at the Federal Reserve's gold storag...
In Defense of Gold
29 Sepsonora69-1
In 1933, President Roosevelt outlawed the ownership or possession of monetary gold by any US individual, partnership, association or corp...
29 Sepsonora69
In 1933, President Roosevelt outlawed the ownership or possession of monetary gold by any US individual, partnership, association or corp...
Most commented articlesFavoritesMore...
World PM Newsflow
Mining Company News
Azimut Expl.(Gems-Pl-Ag)AZM.V
Azimut acquires Duquet Property, Nunavik
CA$ 0.13+30.00%Trend Power :
Corporate news
Section H Drilling 135 m South of Heberto Gold Discovery Hits Gold-Bearing Heberto Style Zones
CA$ 0.08-11.11%Trend Power :
Corporate news
Teryl Res.(Ag-Au-Gems)TRC.V
CA$ 0.02+0.00%Trend Power :
Corporate news
Northern Superior Resources(Gems-Ur)SUP.V
Northern Superior Reports Additional New Showing, Grizzly Property, West-Central Quebec
CA$ 0.03+0.00%Trend Power :
Corporate news
Integra Gold(Gems-Ag-Au)ICG.V
Integra Gold Announces Discovery of New Gold Bearing Zones at Lamaque South and Discloses Significant Drilling Results from No. 6 Vein including 22.64 g/t over 2.59 meters*
CA$ 0.30+3.51%Trend Power :
Corporate news
Teck Announces Silver Streaming Agreement with Franco-Nevada
US$ 6.66+11.93%Trend Power :
Corporate news
6:02 am Teck Resources enters long-term streaming agreement with Franco-Nevada Corporation (FNV) linked to production at the Antamina mine; FNV to make a $610
US$ 6.66+11.93%Trend Power :
Exploration and drilling
Vale do Rio(Coal-Cu-Fe)RIO
Rio Tinto’s Aluminum Production: Is There an Upside?
US$ 38.06+7.45%Trend Power :
Corporate news
Gold Road ResourcesGOR.AX
2015 Annual Report
AU$ 0.44+0.00%Trend Power :
Corporate news
2015 Sustainability Report
AU$ 6.10+1.84%Trend Power :
Corporate news
Comments closed