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Apple's War Chest



November 12, 2009 – Comments (4) | RELATED TICKERS: AAPL , GOOGL , BRK-A

Dear Fools,


Okay, I'll admit I am not an investor in Apple (AAPL). I don't own an Apple product of any sort, never have. I do happen to like the "I'm a Mac/I'm a PC" commercials. I don't care if Steve Jobs is the poster boy for ill behaved diva CEOs. What I want to know is what do you think Apple should do with its war chest? I just read in "Steve Jobs Couldn't Care Less About You" article. Waaaay down at the bottom is a comment by TMFMmbop that reads ,"Frankly, holding that much cash on the balance sheet at a company like Apple is simply lazy. Sure, Buffett held onto a lot of cash for a long time, but Apple isn't Berkshire and Jobs (while talented) is no Buffett." Matt, or anyone else, what would you do with the money? R&D? Buy Silicon Valley lunch? Etch the company logo on the surface of the moon via a really big laser? I ask because Apple is outside my circle of knowledge, as are most tech companies.


I thank you in advance,

Cato the Stumped

4 Comments – Post Your Own

#1) On November 12, 2009 at 11:34 AM, JakilaTheHun (99.92) wrote:

This is perhaps another sign that AAPL is becoming the new MSFT.  They have a bunch of cash and they have no idea what to do with it.  Once you reach a certain size, there's really only so much you do as a company. 

If I were Apple and I had a large horde of cash with nowhere to go, I'd start a technology investment fund with it.  Buy into small technology companies that AAPL likes.  Companies seem to be averse to this sort of idea, but I don't see why not; it's better than leaving the cash sitting around doing nothing and it allows you to reap the rewards of smaller companies while still being a giant company. 

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#2) On November 12, 2009 at 12:18 PM, catoismymotor (< 20) wrote:

Jakila, I like that idea.

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#3) On November 12, 2009 at 12:45 PM, A6EIntruder (< 20) wrote:

Jakila, I think that's a grand idea as well. Having investment in other tech companies means a finger in the IP pie, which really seems to be what tech is all about. In addition I believe it would burnish Apple's image to be seen not just as a designer of products, but also a go-to for funding. What couldn't Apple have next if they made the right deals?

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#4) On November 12, 2009 at 12:46 PM, caterpillar10 wrote:

Job's 1st 'invention' waaaay back in the day: a 'black box' that routed the charges for his internat'l phone calls to various corporate accounts around the country, pissing off MaBell to no end. Obviously he never got caught red handed. Like many budding techies of the day he dreamed of 'being the phone company' (we don't care....we don't have to...) one day. Perhaps he will buy or become a major carrier. 

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