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Am I missing something? $302 million on $42 billion is <1% return.
by mburns 15y ago
Am I missing something? $302 million on $42 billion is <1% return.
- mikeryan 15y agoAm I missing something? $302 million on $42 billion is <1% return. Yeah, net profit was 2.73 billion, 302 million of which was made on interest. $42 billion is total cash on hand.
- Steko 15y agoWhy would this comment be downvoted? He's pointing out the interest is not all that impressive and if that's 11% of profit then the results are probably even less impressive then claimed.
- robryan 15y agoFor the quarter, which would be over 3% for the year. Which doesn't seem to bad if your not putting your money into overly risky things. Treasury bonds may be yielding less?
- jpdoctor 15y agoYou're right: The long bond is less, so what are they invested in? "Marketable securities" with 3% yield means that they have something not AAA (which probably makes sense on such a large cash hoard) but there will come a day when interest rates go up. That will cause the value of their bonds to drop substantially. Hell, I'd like 3% on my money.
- 2arrs2ells 15y agoGet a rewards checking account: http://www.fatwallet.com/forums/finance/775437/ http://www.fatwallet.com/forums/finance/775437/
- robryan 15y agoLooks like we have it easy in Australia http://www.commbank.com.au/personal/accounts/savings-accounts/netbank-saver/rates-fees.aspx http://www.commbank.com.au/personal/accounts/savings-account...
- whatusername 15y agoUp until a couple of weeks ago -- stocking $USD in $AUD would have had some great retuns. But Forex risk is real - and should not be discounted.
- finisterre 15y agoTrue. But consider Google's effective inflation rate. A lot of things they care about - say, Palo Alto real estate - are getting more expensive faster than 3 percent. That money is losing value. Spending on acquisitions or otherwise investing in the business should yield a far better return.
- robryan 15y agoIf the right acquisitions present themselves, they already do a lot and at their level there just aren't as many easy win companies to acquire. I think if I was an investor I rather them lose a little bit of opportunity on their pile of cash than say drop $10 billion onto something like groupon.