Companies with Cash Stock Piles in the Billions

Jun 6, 2011
J. Webster
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Six companies have cash stock piles that entire countries could never fathom having in their bank vaults. Sometimes these cash piles can be a bad influence on companies though, as they make rash purchases of other companies they don’t really need, chasing growth. Then, for some companies, a lot of this cash is stuck overseas, as they don’t want to bring it back into the United States, otherwise they’ll have to pay taxes on it.

However, this much cash is never a bad thing, obviously. What interesting is five of these companies are technology companies, where the trend is only continuing to go higher, what with the mobile phone market and cloud computing the new frontiers, with all these companies playing or want to play some part in each of these industries.

One adjustment, to the list below for Microsoft’s cash hoard, which go down by close to $10 billion after their Skype purchase.

Microsoft: $38,235,000,000
Google: $36,675,000,000
Apple: $29,234,000,000
Cisco Systems: $27,199,000,000
Johnson & Johnson: $17,612,000,000
Qualcomm : $13,025,000,000

It will be interesting to see what these companies do with all of their cash, pay dividends, buy back stock, or buy other companies. What would you advise them to do. If you’re a shareholder, and their stocks take a beating, you’ll love to see them buy back stock rather than spend money on other companies. It seems like the companies that try to cobble together other companies never really succeed. It’s better to buy small companies, as Google does for the most part. And not take the route of say HP, which bought Palm recently.

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