Where do companies keep their cash?

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  • Опубліковано 19 чер 2024
  • Companies are hoarding cash -- to cushion themselves if the economy worsens. But where do they keep all that money? Paddy Hirsch explains. #MarketplaceAPM #EconomicExplainers
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КОМЕНТАРІ • 46

  • @analienfromouterspace
    @analienfromouterspace 4 роки тому +5

    Thank you, this needs to be introduced to the general public so can understand how companies keep their CASH.

  • @n8james2
    @n8james2 9 років тому +12

    Great video, i think some find the depth of this analogy unnecessary but I'm sure others such as myself find it very helpful. Great work Paddy!

  • @lilzeus7
    @lilzeus7 12 років тому +10

    hahaha i love this guys analogies!!!

  • @InstTaxSolutionsLLC
    @InstTaxSolutionsLLC 11 років тому +2

    This is a good use of analogies used to explain the subject. Cash, cash equivalents, etc. typically refer to liquidity.

  • @FideTheProducer
    @FideTheProducer 12 років тому +7

    I wish Paddy was my College professor

  • @AlexanderBlums
    @AlexanderBlums 11 років тому +2

    I think the primary reason for companies not keeping everything in a vault is not the physical security of it`s cash. The primary reason for investing it`s money is that generating interest is a lot more profitable for the companies. Besides, if all assets were kept in cash form, think of the amount of money getting lost to inflation every year.

  • @mauryak3943
    @mauryak3943 4 роки тому +8

    Someone get this man a Drink

  • @PrototypePrjs
    @PrototypePrjs 12 років тому +1

    Paddy Hirsch, you do great videos ... Thanks.

  • @johanandersson9602
    @johanandersson9602 8 років тому +1

    great video! keep up the good work.

  • @davidalen9279
    @davidalen9279 5 років тому

    good teacher.

  • @prakharag132
    @prakharag132 2 роки тому +1

    Bring him back man!

  • @icebergvishnu
    @icebergvishnu 4 роки тому

    thank you Paddy!

  • @websuspect
    @websuspect 9 років тому +1

    no apple actually has $150 Billion they keep it in an Irish Bank account with a legal tax loophole between America and Ireland where the company owner must declare a home country of operations and if they dont they dont pay taxs. So generally your right but sometimes companys will keep cash in an illegal cash holdings for example if i took or sent a $2000 in cash to the bahamas and opened a cayman island account.

    • @nickfleming3719
      @nickfleming3719 5 років тому

      They could just own the bank with that much

    • @bgroks1
      @bgroks1 4 роки тому

      “Legal tax loophole” and then says “illegal cash holdings”. It’s not illegal (yet) to use tax havens.

  • @financeabcs
    @financeabcs 3 роки тому

    Nice metaphor!! 😎

  • @robertkita8321
    @robertkita8321 4 роки тому

    Great 🙌🙌🙌

  • @gauravgupta174
    @gauravgupta174 3 роки тому

    How do stakeholder get their profit is it from cash or equivalente or securitu

  • @rohitsangale6651
    @rohitsangale6651 5 років тому +3

    He always throw pen at last 😅

  • @germyname
    @germyname 3 роки тому

    Always great content and presentation on these videos but for the love of god...please steady the camera.

  • @waysofaquarius649
    @waysofaquarius649 2 роки тому

    You guys have a podcast?

  • @hiwhtsup0001
    @hiwhtsup0001 12 років тому

    during crisis situation...isn't cash is at risk (if invested in money markets & other liquid securities) due to tight markets...??

  • @gauravgupta174
    @gauravgupta174 3 роки тому

    Hey can u make a video on money market

  • @ThrallsBoys
    @ThrallsBoys 12 років тому +1

    Could someone please claify what money markets are :/

  • @kdcruz75
    @kdcruz75 12 років тому +1

    to fight the devaluing of its cash against inflation

  • @dishesdealer417
    @dishesdealer417 12 років тому +2

    They keep it wherever they can be tax cheats and not pay a cent in taxes like G.E. & Citibank.

  • @cwaddle
    @cwaddle 12 років тому

    good analogy (i think).

  • @Mmmmegan0
    @Mmmmegan0 12 років тому

    @kktg1001 what makes you think that bank rates will give you a higher return than money markets? clearly you've never taken a finance class or invested in the market.

  • @michalkononenko9833
    @michalkononenko9833 11 років тому

    Short-term loan markets with maturities of one year or less. Basically, quick cash money for short-term stuff.

  • @Airgutter87
    @Airgutter87 12 років тому +3

    Gosh, I'd love to work for you. :D!

  • @nickfleming3719
    @nickfleming3719 5 років тому

    So what is the rationale behind them not distributing it to the shareholders if they're losing $10s of millions of dollars every year to inflation?

    • @bgroks1
      @bgroks1 4 роки тому

      Nick Fleming I’d assume Research and development.. also the flexibility of being able to make large moves relatively quick and possibly without large amounts of debt. The ‘large move’ could be adding a new production facility, acquiring another company, etc.. while having a nice cash cushion even after the expenditure(s).

  • @itmoves
    @itmoves 12 років тому

    Mr. Apple is accutally in very good shape... yeah right

  • @n00bSLicer
    @n00bSLicer 12 років тому

    @dishesdealer417 What about all the jobs that Buffet and GE create? Is that worth nothing?
    And he does not pay less tax, he's just in a lower bracket. No one is being a tax cheat.

  • @jorjiang1
    @jorjiang1 3 роки тому

    isn't the main reason apple keep their money in bonds and securities because they generates extra cash flow unlike real cash just sits there doing nothing

  • @waysofaquarius649
    @waysofaquarius649 2 роки тому

    This is where private equity and venture capitalists keep their money? I thought otherwise

  • @brianwarner308
    @brianwarner308 10 років тому

    paddy is a great teacher but i agree, he must have thrown this analogy together on the spot. it was really just distracting

  • @leonvinhle
    @leonvinhle 12 років тому

    throwing marker- Taking again! BAD behavior! Not bigman's style

  • @Soloohara
    @Soloohara 2 роки тому

    ahah funny!

  • @n00bSLicer
    @n00bSLicer 12 років тому

    @dishesdealer417 What the hell are you going on about?

  • @hsiewayn
    @hsiewayn 12 років тому

    Great video, mic sucked. And get a stand for your camera...

  • @Cuccia122
    @Cuccia122 12 років тому

    Paddy has done a lot of good work, but this is by far the worst presentation. He sounds like a nut in this one. Stop drinking, Paddy.