Tuesday, January 24, 2012

Apple Holding $100BILLION in cash


OK, so it isn't quite $100B, but at this point it is almost a rounding error or an interest error.
(Or when you are selling 4.4 iPhones a second, it may already be $100B).

$100 billion. My old high school has 100 kids in a class. If I want to, ala Michael Scott, send them all to the college of their choice, they will all choose a $70,000 a year school X 100 kids = $7,000,000 X 4 years = $28MM. K-12, everyone goes, $364MM.

To get up to $1B, I would need to agree to send every class to college for four years for the next 36 graduating classes.

And that is $1B. The ridiculous thing about it is this -- at the rate that Apple is earning cash, it couldn't spend the $1B without making way more than that much back. Even if Apple went to 36 schools my old school's size and sent 3,600 kids to college for 4 years, by the end of year 1, Apple has put WAY more cash into the pile than it has paid out.

Bill Gates is worth $50-80B. Try as he may, he has trouble giving away his money, and he isn't earning what Apple is earning. He does stuff like "give medicine to all of Africa" -- stuff like that. Cannot give away his fortune. A $5,000,000 annual revenue business is a good sized business that can employ a lot of folks. Apple could simply set up 200 such businesses and hope they made money. If not, it would never impact Apple's bottom line. Ever.


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