tag:blogger.com,1999:blog-1527840491496268397.post5247178227859265915..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Horizon Kinetics on "Corporate Risk Reduction"Unknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1527840491496268397.post-10249561108483301022014-03-30T20:20:29.161-07:002014-03-30T20:20:29.161-07:00What is the difference, one might ask, if the comp...<i>What is the difference, one might ask, if the companies hold a 23% cash balance and the managers hold a 23% cash balance? Is it not all the same? </i><br /><br />It's obviously not the same: corporations need to maintain cash balances to fund working capital; mutual funds don't. <br /><br />Five of the companies on their list actually have negative tangible equity; the ones that do have significant net cash are all tech/pharmaceutical companies that are presumably hoarding money offshore to avoid taxes.Jamesnoreply@blogger.com