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Media keeps telling us Apple is not investing, but hoarding cash overseas to avoid the taxation. Care to elaborate how and what they are investing in?
by samsonradu 9y ago
Media keeps telling us Apple is not investing, but hoarding cash overseas to avoid the taxation. Care to elaborate how and what they are investing in?
- WalterBright 9y agoThe media consists of people with journalism degrees, not economics. Such journalists commonly believe in the "cash hoard" theory. To know what they are investing in, consult the Apple Annual Report, which says. Even if the balance sheet says "cash", what they mean is "bank deposits". Bank deposits get loaned out to others, and those others spend it. Nobody borrows money in order to hoard a pile of currency.
- collyw 9y agoActually when I started worked for a bank, we got an initial talk on the financial system and how it works. It showed that most companies do reinvest most of the cash or pay it out as dividends, it was pointed out that the exception at the time was Microsoft who basally hoarded it. That was 12 years ago. Now Apple are the bigger player and seem to be doing exactly the same.