Reflection: This video discuses the importance of cash and how it stands up against the business. On one side, it is said that distributing cash among your shareholders is proving to be more successful. (Simon Avery, Article) The companies (in the tech sector) that are doing better are the ones that are handing out dividends to their shareholders and are getting rid of their cash. On the other hand, companies that re-injecting cash back into R&D, innovativeness, and other developments are seeing a much lower return.
The video goes on to talk about how non-finacial corporations are sitting on 2 trillion in cash and are just waiting for the right time. It is said that more than half of the cash is overseas and they right tax initiatives are currently not in place.
From what I've learned, I believe that every company has to do whats right for themselves, what ever sector your in or how big or small you may be. Sometimes it might be wise to sit on your cash until the right time, other times you need to inject the developments of your product or service.
-Coleton Thielmann
Video Article: http://www.theglobeandmail.com/globe-investor/investment-ideas/features/investor-roundtable/video-is-cash-really-king/article2183723/
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