Ten Billion Dollars…

Makes me think of Mike Meyers’ Dr. Evil character 🙂

Apple apparently has been on a tear the last three years building a massive cash reserve. For comparison’s sake Dell has $9 billion in cash on hand. Bigger company. By far. Less cash. Hmm?

So, the first question I had was this… WHERE do you park all that cash?

The answer is Braeburn. They’re the Apple subsidiary outfit charge with money management (complete with an appley name to boot). All they do is grow that big pile of $10B into something larger. The interesting play here is one of SECRECY. Braeburn is incorporated in Nevada. That apparently affords Apple the ability to dodge the tax man on capital gains AND (here’s the biggy) avoid reporting ANYTHING information-wise at all to the IRS.

What’s not to like about THAT deal!?

But, here’s the real kicker. With that kind of money… what do you do to grow it? Lots of options: stock buybacks; pay out dividends; M&A; or start a venture firm (among others).

What would YOU do? OK, besides taking that hard earned vacation!

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