tag:blogger.com,1999:blog-4740849900073154554.post4985203589475024703..comments2023-08-25T17:30:36.937+05:30Comments on Business Musings: The problem with too much cashRameshhttp://www.blogger.com/profile/11782192840421019943noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-4740849900073154554.post-58382597401306438412010-04-26T03:57:16.278+05:302010-04-26T03:57:16.278+05:30@Vishal - May the blessings be for you too !@Vishal - May the blessings be for you too !Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-73202121773033029932010-04-26T00:44:35.287+05:302010-04-26T00:44:35.287+05:30Yeah, too much of anything is a problem. Oh with c...Yeah, too much of anything is a problem. Oh with cash, of course. And too much of lack of cash is also a problem. ;-)<br /><br />I pray too much of prosperity and growth for the "mango people" and see too much of grand blessings for you and all commentors over here!!! :-)Vishalhttps://www.blogger.com/profile/09901902300962335348noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-52186376038258602052010-04-25T05:53:28.951+05:302010-04-25T05:53:28.951+05:30@J - Oh right; I did not realise that much of Appl...@J - Oh right; I did not realise that much of Apple's cash was also outside. I suppose this is one reason why those companies do not dividend out their cash - to do so, you have to being them into the US and then trigger a tax liability.Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-43422085958449855022010-04-24T23:10:36.335+05:302010-04-24T23:10:36.335+05:30oops I didnt realize that my last comment came out...oops I didnt realize that my last comment came out as anonymous...Jnoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-2148665689659994522010-04-24T10:07:41.041+05:302010-04-24T10:07:41.041+05:30Even in the latest quarterly filings Apple says th...Even in the latest quarterly filings Apple says that of the 41 billion cash plus marketable securities, about 24 billion is held in foreign subsidiaries. Granted, that still leaves a substantial portion of cash in the US. <br /><br />I dont know the specifics of Apple but apparently some tech companies sell their intellectual property to a foreign subsidiary and the the US firm will pay them royalties. So even if most of the business is done in the US, they can keep the cash overseas. I dont have specific information to back this but just some conjectures in the popular press. Still it is fascinating to think about how and why these companies stockpile cash.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-16923555341796665382010-04-24T04:02:40.016+05:302010-04-24T04:02:40.016+05:30@Sandhya - Oh Yeah - that problem makes the compan...@Sandhya - Oh Yeah - that problem makes the company's problem seem perfectly trivial by comparison.<br /><br />@J - True - US Tax laws are particularly onerous. But I think Apple has most of its cash in the US, because most of it is generated there in the first place.Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-55007936928886289142010-04-24T00:53:49.437+05:302010-04-24T00:53:49.437+05:30At least for now, many tech companies that are sit...At least for now, many tech companies that are sitting on huge piles of cash, are unable to touch their cash because they are holding it overseas and are reluctant to bring it back to the US for fear of paying huge taxes.<br /><br />http://www.marketwatch.com/story/tech-firms-battle-lawmakers-bringJnoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-79783487794585046432010-04-24T00:15:41.449+05:302010-04-24T00:15:41.449+05:30as one of the person i respect a lot used to say
...as one of the person i respect a lot used to say<br /><br />"Only Cash is Reality"<br />(you know who)<br /><br />and anything which is real (and not cooked up like sathyam) is worth it even though it is slightly excess :-)<br /><br />Now that i am not the business expert, i can only think of all our politicians and businessmen. I many times wonder, how they manage the billions of cash they supposedly possess in various colours - storage, expenditure, transport - no visible paper - complex network of trust and fear... what it takes to run a parallel system of that magnitude....!! phew... companies have a simpler task!!Sandhya Sriramhttp://sandhyasriram.sulekha.comnoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-36687003269965572872010-04-23T13:50:32.410+05:302010-04-23T13:50:32.410+05:30@Durga - Yeah some companies just like to be a bul...@Durga - Yeah some companies just like to be a bully all the time !Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-83893442504743306522010-04-23T11:15:41.883+05:302010-04-23T11:15:41.883+05:30Well, I have personally known people who have enou...Well, I have personally known people who have enough cash balance in their banks (corporates) and behave tight fisted to pay the creditors, whereas they latch on to the debtors like a leech at the cost of client relationship! Pathetic working capital management I must say. Generating cash is fine, but how to employ the excess cash is the question. Regulate the working capital a bit more, haggle with the creditors some more and get better deals, to name an option. Guess some people just cannot do away with their <br />"cash based accounting" mindset. Phew!Durganoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-57025593623738563802010-04-23T10:35:41.985+05:302010-04-23T10:35:41.985+05:30avvvvvvvv....gils invading kingdoma!! oh gaawdavvvvvvvv....gils invading kingdoma!! oh gaawdgilshttps://www.blogger.com/profile/03259194565523548553noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-42493806628117211222010-04-23T04:22:53.422+05:302010-04-23T04:22:53.422+05:30@ambulisamma - Ha ha Ha. If only that was true ......@ambulisamma - Ha ha Ha. If only that was true .....<br /><br />@Deepa - Touche ! May the Good Lord bless you with THE problem !!Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-88440024921665377262010-04-22T22:28:55.147+05:302010-04-22T22:28:55.147+05:30Our Father in heaven. Holy be your name....
Ohh L...Our Father in heaven. Holy be your name....<br /><br />Ohh Lord! I am so happy in my life. So happy that I am fed up of this happiness. How about giving me some problems too! Please Lord, make suffer with the woes of having too much money! I know life is all about suffering, I am willing to suffer my lord!<br /><br />P.S.- This voluntary suffering is only acceptable with regards to excess cash! If you try and play tricks with me, I will make Gils invade your kingdom!Deepahttps://www.blogger.com/profile/16149267172223745802noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-60112403847669340382010-04-22T20:11:51.842+05:302010-04-22T20:11:51.842+05:30I think u hv personally related to apple's pos...I think u hv personally related to apple's position yourself,and you are doing one post like this.<br />(Too much of a cash to habdle yourself right?)<br /><br />@ Gils:' If too much of a cash ocerflows into'Gils nala nidhi' then you will also be into problem,so whatever exceeds 1 million dollar shld go for this thunai nidhi named after Ambuli and managed by me.ambulisammahttp://www.ambulisamma.wordpress.comnoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-83878618295510958072010-04-22T17:07:15.171+05:302010-04-22T17:07:15.171+05:30@zeno - Great idea to form a consultant pool - McG...@zeno - Great idea to form a consultant pool - McGilsey & Co and lets charge a bomb for our advice :)<br /><br />@gils - Now how come you made exactly the comment I expected :):) I am now qualified to stand for the post of Secretary of the Gils Rasikar Mandram (Fan Club).Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-58584751532542830332010-04-22T15:56:47.419+05:302010-04-22T15:56:47.419+05:30our simple and super option iruku. Enaku oru share...our simple and super option iruku. Enaku oru share thara sollunga ellariyum. "Gils nala nidhi" ku contribute panna tax relief..pain relief..ella reliefum kedaikum.gilshttps://www.blogger.com/profile/03259194565523548553noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-73976503788471825052010-04-22T12:55:38.155+05:302010-04-22T12:55:38.155+05:30Too much of anything is a problem. so true! cant a...Too much of anything is a problem. so true! cant agree more on tat.<br /><br />that excess cash can be given to employees as bonus or money to buy the stocks <br /><br />Rather than acquisitions, you can spend on quest for holy grail[heavy R & D]<br /><br />we could consolidate all the other ideas that may come morph them in more business jargon and charge a consulatant fee :PAppuhttps://www.blogger.com/profile/11943787484240840432noreply@blogger.com