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Apple has a problem: They’re too good at making money

“Apple has a problem. They’re too good at making money,” Michael Batnick, CFA, Director of Research at Ritholtz Wealth Management, writes for The Irrelevant Investor. “Their most recent quarterly statement revealed that they are sitting on $38 billion in cash and cash equivalents.”

Apple Park in Cupertino, California
Apple Park in Cupertino, California

Michael Batnick for The Irrelevant Investor:

If we expand our definition of cash to include current and non-current marketable securities, think bonds, then they have $195 billion in cash. You know $195 billion is a lot of money. It doesn’t need context. So I won’t tell you how many companies in the S&P 500 it could buy with all that cash. Just kidding. The answer is 460.

Apple isn’t hoarding cash because they’re preparing for the apocalypse. They literally cannot distribute it fast enough to their shareholders. Over the last five years, they’ve spent a quarter of a trillion dollars on buybacks and dividends.

But the money just keeps piling up, and they’ve gotta do something with it… Josh and I are going to talk about what Apple’s next move should be and much more on tonight’s WAYT (What Are Your Thoughts):

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MacDailyNews Take: How about, for a start, if you want to distribute it to shareholders quickly, being a bit more generous with the dividend?


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