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14 Comments
- oGMo, on 10/12/2007, -7/+27Yeah. Google's stifling innovation all right. :p I hear they don't opt to invest much money into that R&D thing at all. When's the last time we saw a new product from them?
I mean seriously, did you even think about that statement before you hit submit? - borninda818, on 10/12/2007, -1/+9i think google should buy canada. Then we could buy bonds instead of stocks.
- sk1d, on 10/12/2007, -0/+6if a company has excess cash, and reinvesting in the firm isn't going to provide returns, they should ditribute back to shareholders as dividends who can then go and invest where they see fit, and in all likelyhood, earn more than 4.5%
- catullus, on 10/12/2007, -1/+4elebrio seems to think that all companies can make efficient use of their entire warchest all at once... in R&D no less... uhhh... scalability anyone??
- aamer, on 10/12/2007, -1/+3@davidkeithjones:
keep money? companies are not really supposed to keep money, they are supposed to either reinvest it in something or distribute it to shareholders in the form of dividends. - billybil, on 10/12/2007, -0/+1google.org
- matthewvelie, on 10/12/2007, -1/+2Part of the article is wrong, this sentence: "For 2007, Schachter is assuming a 4.5% rate of return on Microsoft’s cash." Should be: "For 2007, Schachter is assuming a 4.5% rate of return on GOOGLE’s cash."
- h3smith, on 10/12/2007, -0/+1Jesus christ this is the dumbest thing I have ever read.
When a corporation or someone like bill gates invests their money, they don't bury it in mason jars in the backyard. They put it in other companies, other funds, they INVEST it into the community. That money is then used by other companies to create more wealth and opportunity for others, all leading to more jobs and better standards of living for everyone.
God, why is everyone so economically retarded. - mabhatter, on 10/12/2007, -1/+1no, they should be forced to keep only a small portion of their cash and give the profits to the owners. Retained earnings are the bane of the stock market right now. realize for all the "profit" microsoft has made until recently they haven't paid one dime to investors as actual profit! I understand earnings for a growing business, but in many of these companies cases it's funding private little "armies" of assets they use instead of competing.. or being forced to ceade a round because they have to allocate resources more closely.
- elebrio, on 10/12/2007, -3/+2Google isn't holding more than 40% of their assets in equities at the moment. Its a statement that deals with THE FUTURE.
- GrimSage, on 10/12/2007, -1/+0Their saving up for Googlezon!!!
http://www.albinoblacksheep.com/flash/epic - mabhatter, on 10/12/2007, -1/+0from another point of view, those profits are already owned by the stockholders... so the question is are they getting a return on THEIR investment (the stockholders didn't give you money for free) or should the company be paying the return on investment, that's what it's for!!
- verifex, on 10/12/2007, -3/+1Not that Google and Microsoft don't give back to the community already, but all big corporations should be required to do so. Having large amounts of wealth when there are people in the world who are dying simply because they are poor is flat-out immoral. These huge companies have all this cash set aside much the same way that the US has huge stockpiles of weapons. They are saving it for when they need to fight. When Google or MS feels that their core market is under attack, they will dig into their warchest of money to fight with.
- elebrio, on 10/12/2007, -16/+9Companies like Applied Materials, Microsoft and now Google that opt to do this are stifling innovation in their fields by sitting on huge amounts of cash in equities instead of re-investing it in acquisitions or R&D.
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