Where do companies keep their cash?

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  • เผยแพร่เมื่อ 3 มิ.ย. 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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ความคิดเห็น • 46

  • @analienfromouterspace
    @analienfromouterspace 4 ปีที่แล้ว +5

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

  • @n8james2
    @n8james2 9 ปีที่แล้ว +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 ปีที่แล้ว +10

    hahaha i love this guys analogies!!!

  • @InstTaxSolutionsLLC
    @InstTaxSolutionsLLC 11 ปีที่แล้ว +2

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

  • @FideTheProducer
    @FideTheProducer 12 ปีที่แล้ว +7

    I wish Paddy was my College professor

  • @PrototypePrjs
    @PrototypePrjs 12 ปีที่แล้ว +1

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

  • @AlexanderBlums
    @AlexanderBlums 11 ปีที่แล้ว +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 ปีที่แล้ว +8

    Someone get this man a Drink

  • @johanandersson9602
    @johanandersson9602 8 ปีที่แล้ว +1

    great video! keep up the good work.

  • @davidalen9279
    @davidalen9279 5 ปีที่แล้ว

    good teacher.

  • @gauravgupta174
    @gauravgupta174 3 ปีที่แล้ว

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

  • @icebergvishnu
    @icebergvishnu 4 ปีที่แล้ว

    thank you Paddy!

  • @ThrallsBoys
    @ThrallsBoys 12 ปีที่แล้ว +1

    Could someone please claify what money markets are :/

  • @robertkita8321
    @robertkita8321 4 ปีที่แล้ว

    Great 🙌🙌🙌

  • @Mmmmegan0
    @Mmmmegan0 12 ปีที่แล้ว

    @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.

  • @hiwhtsup0001
    @hiwhtsup0001 12 ปีที่แล้ว

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

  • @prakharag132
    @prakharag132 2 ปีที่แล้ว +1

    Bring him back man!

  • @financeabcs
    @financeabcs 3 ปีที่แล้ว

    Nice metaphor!! 😎

  • @rohitsangale6651
    @rohitsangale6651 5 ปีที่แล้ว +3

    He always throw pen at last 😅

  • @waysofaquarius649
    @waysofaquarius649 2 ปีที่แล้ว

    You guys have a podcast?

  • @gauravgupta174
    @gauravgupta174 3 ปีที่แล้ว

    Hey can u make a video on money market

  • @cwaddle
    @cwaddle 12 ปีที่แล้ว

    good analogy (i think).

  • @websuspect
    @websuspect 9 ปีที่แล้ว +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 ปีที่แล้ว

      They could just own the bank with that much

    • @bgroks1
      @bgroks1 4 ปีที่แล้ว

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

  • @kdcruz75
    @kdcruz75 12 ปีที่แล้ว +1

    to fight the devaluing of its cash against inflation

  • @dishesdealer417
    @dishesdealer417 12 ปีที่แล้ว +2

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

    • @liam-dr3vv
      @liam-dr3vv 4 ปีที่แล้ว

      dishesdealer417 facts

  • @michalkononenko9833
    @michalkononenko9833 11 ปีที่แล้ว

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

  • @germyname
    @germyname 3 ปีที่แล้ว

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

  • @Airgutter87
    @Airgutter87 12 ปีที่แล้ว +3

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

  • @itmoves
    @itmoves 12 ปีที่แล้ว

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

  • @nickfleming3719
    @nickfleming3719 5 ปีที่แล้ว

    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 ปีที่แล้ว

      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).

  • @n00bSLicer
    @n00bSLicer 12 ปีที่แล้ว

    @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.

  • @leonvinhle
    @leonvinhle 12 ปีที่แล้ว

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

  • @jorjiang1
    @jorjiang1 3 ปีที่แล้ว

    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

  • @brianwarner308
    @brianwarner308 10 ปีที่แล้ว

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

  • @waysofaquarius649
    @waysofaquarius649 2 ปีที่แล้ว

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

  • @n00bSLicer
    @n00bSLicer 12 ปีที่แล้ว

    @dishesdealer417 What the hell are you going on about?

  • @Soloohara
    @Soloohara 2 ปีที่แล้ว

    ahah funny!

  • @hsiewayn
    @hsiewayn 12 ปีที่แล้ว

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

  • @Cuccia122
    @Cuccia122 12 ปีที่แล้ว

    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.