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Peter Thiel, himself, mocked this type of behavior from Google when Eric Schmidt couldn't find anything else to do with Google's hoards of cash rather than buyi
by bloodyplonker22 5y ago
Peter Thiel, himself, mocked this type of behavior from Google when Eric Schmidt couldn't find anything else to do with Google's hoards of cash rather than buying back shares. Thiel likened paying a dividend to admitting that your shareholders know what to do with the money more than you. It's even worse in Palantir's case because it is supposed to be a growth company that should be reinvesting the capital into growth.
- CheezeIt 5y agoThey’ve done the exact opposite of what you’re saying. They raised money, and now they’re holding on to it.
- WheelsAtLarge 5y agoDuring the last economic downturn interest rates in a few countries fell below 0. This means that banks start to charge for holding cash instead of paying interest. I suspect that he feels that interest rates will have to fall below 0 at some point so holding gold is a good alternative to save money for future use. Another possibility is that inflation will eat up the money's value so gold is a good place to store value until needed. I say it's a good sign that Palantir does not need immediate cash and are able to meet their expenses near term. Also, Google and Plantir are in 2 different phase in their growth. Google is unlikely to need cash for growth since it's making a truckload of earnings every quarter. Palantir on the other hand is likely to need some money in the future to grow. Gold is a great alternative for Palantir but not Google.