That Cash Thing

• danthemason

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  Posted: 19 January 2011 05:48 AM

  59 billion

  The pattern

  [ Edited: 19 January 2011 05:54 AM by danthemason ]      

• IluvatarMilan

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  Posted: 19 January 2011 06:25 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.

       

• Mav

  

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  Posted: 19 January 2011 06:39 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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• johnG

  

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  Posted: 19 January 2011 10:03 AM #3

  Mav - 19 January 2011 10:39 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:

       

• calebcar

  

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  Posted: 19 January 2011 10:34 AM #4

  johnG - 19 January 2011 02:03 PM

  Mav - 19 January 2011 10:39 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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• JonathanU

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  Posted: 19 January 2011 11:39 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…

       

• Tetrachloride

  

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  Posted: 19 January 2011 11:47 AM #6

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

       

• asymco

  

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  Posted: 19 January 2011 01:16 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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  Read more at: Asymco Blog