What a pointless, yet entertaining, factoid. And, do you hear that sound? It’s the distinctively annoying emanation of analysts whining. Sheesh, you’d think it was their money, which it isn’t it, and why aren’t these people satisfied with a tripling of Apple’s share price since the launch of the iPhone?
Bloomberg reports that Apple’s $51-billion cash hoard is, assuming the comparison has any meaning, is numerically larger than Costa Rican gross domestic product. Additionally, they piss on for a bit about how the company’s return on this stash is only 0.75 percent.
“The point is they can’t keep accumulating it,” said Ryan Jacob, chairman and chief investment officer, Jacob Funds. “I don’t understand the hesitation about a stock buyback and/or dividend.”
Thereupon, the counterpart is picked up by Ashok Kumar, an analyst with Rodman & Renshaw said, “We could argue until the cows come home whether the single-digit returns on $50 billion in cash is optimal for shareholders, but the stock performance speaks for itself. If you want higher returns, you have to take more risks and there is no reason for them to do that.”
Isn’t this silly? Rich guys who help rich people make money wringing their hands over a big pile of money to which they have no reasonable claim.
I always thought the point of having money is to have money. Then again, we might want to talk about who Apple could buy with all. that. money.
What’s your take?