Originally Posted by digitalclips
I'd agree there, but don't fret, you can fix it .. you simply need to learn to respond without the snarky tone, which may not be intentional but is never the less, coming over that way time and time again.
It's a happy day, let's all sing Kumbaya and move on
Yeah, and maybe one of these days you'll read my posts for what I'm actually saying and not interpret every disagreement as an insult.
Originally Posted by SolipsismX
You are ignoring that Apple is
spending their cash, they are just making more than they are spending. There a numerous reports of Apple investing billions in lump sum investments to other companies. This is not a bad thing for investors and you can look at today's stock price to see that Apple's actions have increased share holder value since they went from red to black.
All you're really saying here is that Apple has a cost of doing business. Well, sure. But the free cash accumulation is happening after paying for operating costs, and after their various investments. So it's net, and the sum of the net continues to grow, and at an accelerating
I am all for a company investing in growth. This is the purpose of capital. I've said this many, many times in these threads. But when it becomes very, very clear that a company can't come anywhere close to spending their free cash on growth, then question of what other thing(s) they should do with the money naturally arises.
As for operating in the red, Apple hasn't done that in a long time. You don't even want to think about what would happen if Apple reported a loss.
Just a scenario for you to consider: Apple's board decides to pay stockholders a very generous annual dividend of 2%, which I will round up to $10 a share. The total cost to Apple's cash flow would be $9.3b. That's only a bit more than half the amount of cash they added to the stockpile in just the last quarter alone.
It could easily amount to not more than 20% of their annual free cash flow -- which means they could still stockpile 80%, or $50b more every year, even assuming that the accumulation rate doesn't increase.
So tell me again, how does this damage Apple's ability to do anything?