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Technology Stocks : Apple Inc.

AAPL 271.50

+2.0%

Nov 21 9:30 AM EST

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To: aaplAnnie who wrote (149819)	2/7/2013 2:58:12 PM
From: slacker711	2 Recommendations Read Replies (2) of 213173

Choosing to hoard cash rather than buy back shares or pay dividends is a choice to preserve the fortunes of management at the expense of shareholders. No doubt many long-term Appleshareholders are fine with this, because their returns have been spectacular. That's absurd. The money does not belong to them. That doesn't make any sense. It does make sense. Management's interests are best served not by maximizing shareholder return but by avoiding any possibility of a disaster. They dont have balanced portfolios. Their jobs, wealth, and reputation are tied up with Apple. So, the obvious course is to hold onto huge amounts of cash to help avoid the possibility of a disastrous outcome. Apple isnt unusual here, the vast majority of large cap tech hold way too much cash on their balance sheet. Unfortunately, the safest route isnt usually the best way to maximize shareholder returns. Slacker

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