Saturday, January 19, 2013

Go forth and multiply (2)

If you’re a blue chip multinational, you possess an abundance of capital liquidity. For example, Apple (AAPL) had over $3 billion in cash on its balance sheet at the end of 2012, up from $368 million in 2008.  General Electric (GE) had $84 billion in cash to start with in 2012 after ending 2008 with $48 billion.  Here’s another one, Starbucks (SBUX) had $1.2 billion in cash at the end of 2012, up from $269 million in 2008. In 2012, total financial assets are nearly 10 times the value of the global output of all goods and services. As financial markets in China, India and other emerging markets continue to develop, total global capital will hit $900 trillion by 2020.

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