For those of us in the value school of investing, this would have NEVER been asked in the late 1990s. Yet Breakingviews.com wonders if cash-rich tech companies aren't bargains.
Of the companies mentioned in the linked article, the only one I own is Microsoft (MSFT/NASDAQ), which regular readers know is my most recent portfolio addition. I've also been thinking about adding Dell, another firm mentioned in the piece. But haven't, primarily because I've been swamped with non-investing things and just haven't had the time to dwell on it. (Yet if I do buy it, you can rest assured you'll read it here.)
A bit:
When big blue chips such as Intel and Microsoft offer dividend yields of
3.8pc and 3.1pc respectively, it increases pressure on the likes of Apple
and Cisco to join in. Getting rid of the cash altogether probably isn’t
smart – after all, these companies still need their shock absorbers. And
much of the cash may be held overseas in certain cases, but paring it back
might help better reveal the true value of the businesses.
Many of these companies have reached a degree of maturity. And are like cyclical businesses now. Pick your spots.
Comments