That Cash Thing

  • Posted: 19 January 2011 04:48 AM

    59 billion

    The pattern

    [ Edited: 19 January 2011 04:54 AM by danthemason ]      
  • Posted: 19 January 2011 05:25 AM #1

    Impressive. It is, quite literally, off the charts.

    I’m anxious to find out what eventually will be done with it and remain happily invested until that moment.

         
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    Posted: 19 January 2011 05:39 AM #2

    At present rates and assuming no major purchases, we’ll be comfortably over $70 billion in cash by this time next year.

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    Posted: 19 January 2011 09:03 AM #3

    Mav - 19 January 2011 09:39 AM

    At present rates and assuming no major purchases, we’ll be comfortably over $70 billion in cash by this time next year.

    I’d say likely near $80b.  :groucho:

         
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    Posted: 19 January 2011 09:34 AM #4

    johnG - 19 January 2011 01:03 PM
    Mav - 19 January 2011 09:39 AM

    At present rates and assuming no major purchases, we’ll be comfortably over $70 billion in cash by this time next year.

    I’d say likely near $80b.  :groucho:

    People complain that the money is not “earning” anything. In the event of significant inflation, that cash is a major hedge. In addition to a stock growing at 60%++ a year, each share will have $80 money market bonus that will come close to keeping up with inflation. Apple diversifies its cash to foreign markets, and knows much more about currency valuation than I do. If interest rates go to 10% $80 billion adds eight billion a year in earnings.

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  • Posted: 19 January 2011 10:39 AM #5

    Calebcar - Apple invests their cash in liquid debt instruments (both sovereign and corporate).  These are probably the worst types of financial instruments for hedging against inflation…

         
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    Posted: 19 January 2011 10:47 AM #6

    The bars are nice, but there’s a lot of ways to draw the trend.

         
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    Posted: 19 January 2011 12:16 PM #7

    Updated: http://www.asymco.com/2011/01/19/20-billionyr-apples-cash-growth-acceleration-suggests-100-billion-next-year/

    Some nice comparable market values to go as side dishes.


    Here is a list of iconic companies whose market cap is less than Apple?s cash.

    Visa Inc. $59.63b
    American Express Company $55.8b
    The Boeing Company $53.16b
    Morgan Stanley $43.5b
    The Dow Chemical Company $41.8b
    NIKE, Inc. 40.22b
    Eli Lilly & Co. $40.12b
    Texas Instruments Inc. $40.92b
    Nokia $39.92b
    News Corporation 37.72b

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