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There is research [1] that points out that cash hoarding is in a sense an opportunity: with cash you can get better M&A deals, be better prepared to jump in on
by skolos 11y ago
There is research [1] that points out that cash hoarding is in a sense an opportunity: with cash you can get better M&A deals, be better prepared to jump in on new technology, etc. Other investments compete with this opportunity.
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[1] http://www.nytimes.com/2016/01/24/magazine/why-are-corporations-hoarding-trillions.html http://www.nytimes.com/2016/01/24/magazine/why-are-corporati...
- hyperpape 11y agoThough the obvious question is "for how long?" This explanation only makes sense if that cash eventually gets spent (not necessarily all spent down to $0, but companies can't keep having rising ratios of cash to value forever).