Corporate America’s Concentration of $2 Trillion In Cash

When financial data is released pertaining to the financial health of corporate America, it will often be said that “corporate America is awash with almost $2 trillion in cash.” That statement is true, but it is important to realize that there is nothing like an even distribution of this cash wealth. 

In fact, over $1 trillion in corporate America’s cash is held in the following companies: Apple, Microsoft, Berkshire Hathaway, JP Morgan, Wells Fargo, Cisco, Alphabet, Oracle, Amgen, Gilead Sciences, General Electric, Qualcomm, Coca-Cola, PepsiCo, Facebook, Procter & Gamble, Intel, Amazon, Bristol-Myers Squibb, Caterpillar, Franklin Resources, Visa, Celgene, Nike, Wal-Mart, and Adobe. 

For the past ten to fifteen years, the cash and debt … Read the rest of this article!

Kraft’s Appeal And Drawbacks As A Permanent Investment Holding

For the past couple of days, we have discussed the ways in which IBM can prove to be a superior investment going forward, despite the narrative that’s become familiar to many—the technology service firm has been having trouble growing its revenues. Because of IBM’s low 25% dividend payout ratio, and its extensive commitment to repurchasing stock that is currently in the 10x earnings range, you can easily way a way IBM can prove to be a lucrative long-term investment even while its revenues stagnate.

Now, I want to talk about another excellent company where the opposite is true—revenues are having trouble growing, and it tells you something about the current state of Kraft’s … Read the rest of this article!