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US Companies Are NOT Holding Too Much Cash

Watch the video with Andrew Stotz or read a summary of it below.



Over the last few weeks, we have been considering the causes of the rising cash levels at US companies and last week I looked at what academia had to say about it.

Surprisingly, I realized that the question asked was the wrong one.

The question to ask shouldn’t have been: “Why are US companies currently holding so much cash?”

But: “Why did US companies hold so little cash in the 1995-2003 period?”


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