Is a company like Apple actually any good for world’s economy ? They seem to be hoarding too much cash without spending any significant portion of it.
I dont care about companies earning money however i care if they dont invest back.
I dont care about companies earning money however i care if they dont invest back.
It's the same as someone having 15.6 salaries in their bank account (not counting for the loans).
You’ll want to put a reserve in something safe, like treasuries.
You’ll want to invest some in somethingnhigher Heike for opportunistic needs, like an acquisition or, in Apple’s case, locking in pricing with suppliers (most companies can’t afford that).
But if you have more than that? Might as well return to shareholders since they aren’t investing in you for your stock market prowess, but for your computer manufacturing and sales prowess.
Apple had a problem for a while with that middle category: they were the fastest growing large cap stock so there wasn’t anything better than their own stock to buy.
This is an interesting problem to have. Imho they still should have paid out more dividends, but what they did was probably more tax advantageous.
As for investing back, here's one Apple PR story about Finisar, in which Apple invested $390 million to produce VCSELs in Texas.
https://www.apple.com/newsroom/2019/01/component-manufacturi...
Apple is not just sitting on its cash but making strategic purchases as it goes forward.