Archive link: https://archive.ph/NF2r0
At some point, getting Nintendo would be a career moment and I honestly believe a good move for both companies. It’s just taking a long time for Nintendo to see that their future exists off of their own hardware. A long time… :-)
If you’re sitting on cash, you’re guaranteed to lose money to inflation. If you invest it wisely, you have a good chance of beating inflation. Even in personal finance, it’s very stupid to sit on a big pile of cash; everything above and beyond an emergency fund or savings for a short-term goal should be invested.
Honestly even the idea of an emergency fund, I mean accounting dorks say things like “save six months salary in an accessible, liquid form”.
Does anybody really do that? I mean for a middle-class well-educated dual-income household that’s probably close to 100k, which we were all recently reminded the limit for bank account insurance.
If you own your home doesn’t it make more sense to have a secured line of credit set for emergencies and then ride as close to the wire as you feel comfortable?
Your emergency fund is usually recommended to be 3-6 months of expenses, not salary…though I guess for plenty of people, even at high salaries, that may be the same number, but then you’ll never have savings anyway. Really your emergency fund is for however much risk you can tolerate, like if you end up unemployed for 3-6 months, but your emergency fund is for things other than just unemployment, like sudden medical expenses or replacing a water heater. If you’re comfortable with a line of credit on your home being your emergency fund, go for it. There’s some risk to that, but there’s different kinds of risk to everything.
I’m assuming that “big pile of cash” is their emergency fund - Spencer implies as much when he says that it serves as an impediment to buying them out.
There’s some use for an emergency fund, but since businesses this size have steady streams of revenue, they usually only want to sit on tons of cash when they can’t find anything better to invest it in. Microsoft went on acquisition sprees, but other companies might buy back shares to return that excess cash to investors.