Skip to content
Learning that drives better investment decisions

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?”

US Companies Are NOT Holding Too Much #Cash

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

Posted in Chart of the Day, Investment Research