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Apple Is the New Pimco

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101–110 of 113 posts

Re: Apple Is the New Pimco

#101
>cash managers are also based in the city known for its casinos, where hotel rooms costing as little as $69 a night provide cheaper lodgings than banker stops in New York, Boston and Newport Beach, California,

LOL. As if a cheaper hotel room is relevant when discussing transactions in dozen of milions !!!

Re: Apple Is the New Pimco

#102

Earlier quoted context omitted.

Stuck overseas in the sense that corporations aren't willing to pay American taxes... Why should Apple pay American taxes on the profits from a product manufactured in China and sold in Germany? (Albeit "Designed in California"!)

Errr because they're headquartered in the US and rely on the shield of the US government when it comes to rule of law, educating their workforce, providing the infrastructure etc for them to be in the position where they are today? In this day and age it makes _less_ sense to try and tax based on where componentry or network services or consumers start or finish.

What infrastructure is needed to sell a product manufactured in China to a customer in the US? Which educated workforce is needed to ship and then sell said product in Germany? What do American 'rules of law' have to do when the product is sold in Germany (under EU consumer laws)?

Re: Apple Is the New Pimco

#103
post #95
post #88

It boggles my mind that Apple isn't using all these money for something better. What prevents them from, say, hiring up or luring away all the great CS/hardware PhDs, build a giant lab for robotics, build new space exploration company, new sustainable for-profit tech company, start massive search engine efforts, start giant initiative for for-profit cancer research and so on and on and on. There are endless challenge…

The reason is Wall street. If Tim Cook invests heavily in R&D, earnings will tank and then activist investors will replace him to boost dividends and buy backs. Google can get away with this as the CEO has a lot of credibility and also class B voting shares.

That's entirely it. IBM is in a similar situation now, where the CEO knows she has to spend some of their massive savings to survive, but is getting major pressure from Wall Street to cut costs and up dividends and stock price.

Not sure why you were downvoted for this observation.

Re: Apple Is the New Pimco

#104
post #88

It boggles my mind that Apple isn't using all these money for something better. What prevents them from, say, hiring up or luring away all the great CS/hardware PhDs, build a giant lab for robotics, build new space exploration company, new sustainable for-profit tech company, start massive search engine efforts, start giant initiative for for-profit cancer research and so on and on and on. There are endless challenge…

"It boggles my mind that Apple isn't using all these money for something better. What prevents them from, say, hiring up or luring away all the great CS/hardware PhDs, build a giant lab for robotics, build new space exploration company, new sustainable for-profit tech company, start massive search engine efforts, start giant initiative for for-profit cancer research and so on and on and on." And what do you think App…

>You have never wondered why Apple is the one along three manufacturers(Samsung and Microsoft) that could create aluminum computers and not cheap plastic ones?

So aluminum cases for computers is putting us 50 years ahead? Is it some kind of great innovation?

I don't think so.

Re: Apple Is the New Pimco

#105
post #95

Earlier quoted context omitted.

The reason is Wall street. If Tim Cook invests heavily in R&D, earnings will tank and then activist investors will replace him to boost dividends and buy backs. Google can get away with this as the CEO has a lot of credibility and also class B voting shares.

That's entirely it. IBM is in a similar situation now, where the CEO knows she has to spend some of their massive savings to survive, but is getting major pressure from Wall Street to cut costs and up dividends and stock price. Not sure why you were downvoted for this observation.

I dont think you can blame Wall Street for IBM's performance. Buffett is a big investor in IBM, if the CEO wants she can use Buffett's influence to keep wall street at bay.

Re: Apple Is the New Pimco

#106

Earlier quoted context omitted.

Stuck overseas in the sense that corporations aren't willing to pay American taxes... Why should Apple pay American taxes on the profits from a product manufactured in China and sold in Germany? (Albeit "Designed in California"!)

Errr because they're headquartered in the US and rely on the shield of the US government when it comes to rule of law, educating their workforce, providing the infrastructure etc for them to be in the position where they are today? In this day and age it makes _less_ sense to try and tax based on where componentry or network services or consumers start or finish.

No, in this day and age it makes more sense to tax production and consumption in their respective locations wherever they are on Earth.

It'd do a lot to reduce global warming by humans.

Re: Apple Is the New Pimco

#107
post #94

Earlier quoted context omitted.

Youtube and Maps were acquired, not Google projects. So they got something that worked already, instead of just throwing money to come up with something (which seldom worked for them outside of Search and Mail). Android was Google's (though that was acquired too IIRC, albeit in a much different form), but while a market favorite, it's not a profit source for Google and it's also losing control of it (with Samsung, Am…

Depends on how you define a profit source. The main purpose of Android was to get people to look at Google ads on their cellphones. They were very clear about this when they announced Android as free and open source.

Sure, but even in this case, as I wrote: "Even for mobile ads, most of Google's revenue comes from iOS devices.".

To have to write a whole OS, buy Moto for multi-billion dollars, get the most market share of the market even, and then lose money on it and still get your ad money most of your competitor's mobile OS you don't control, is a little failure-ish...

Re: Apple Is the New Pimco

#108

> Getting allocations of corporate bond deals is one of the easiest ways for managers to outperform benchmark bond indexes because they’re typically sold at a discount to market rates, according to Jason Shoup, the head of U.S. high-grade credit strategy at Citigroup Inc. The bonds aren’t added to the indexes investors are measured against until the end of each month. That can generate as much as 0.2 percentage point…

> Bonds are a volume game. You find an angle to make 0.2% and lever the hell out of it.

This would only work if they are able to borrow money cheaper than the bond markets on which they are buying debt, which would put them in the business of debt arbitrage.

I don’t think this is the case, they are just parking their money in something better than a bank account.

Re: Apple Is the New Pimco

#109
post #102

Earlier quoted context omitted.

Errr because they're headquartered in the US and rely on the shield of the US government when it comes to rule of law, educating their workforce, providing the infrastructure etc for them to be in the position where they are today? In this day and age it makes _less_ sense to try and tax based on where componentry or network services or consumers start or finish.

What infrastructure is needed to sell a product manufactured in China to a customer in the US? Which educated workforce is needed to ship and then sell said product in Germany? What do American 'rules of law' have to do when the product is sold in Germany (under EU consumer laws)?

If a country or region implemented tariffs that discriminated against Apple products to grow or protect a mobile industry which government do you think they're going to call? And the US government won't say "sounds like a Chinese manufactured product being sold into a Latin American country. Ask someone else to help" Nope, it'll be the threat of retaliatory measures that'll get that market reopened/fixed and it'll be a costly endeavour.

Re: Apple Is the New Pimco

#110
post #102

Earlier quoted context omitted.

What infrastructure is needed to sell a product manufactured in China to a customer in the US? Which educated workforce is needed to ship and then sell said product in Germany? What do American 'rules of law' have to do when the product is sold in Germany (under EU consumer laws)?

If a country or region implemented tariffs that discriminated against Apple products to grow or protect a mobile industry which government do you think they're going to call? And the US government won't say "sounds like a Chinese manufactured product being sold into a Latin American country. Ask someone else to help" Nope, it'll be the threat of retaliatory measures that'll get that market reopened/fixed and it'll be…

The iPhone is extremely high tariffed in for example Argentina because it is not manufactured in the country. I haven't seen any US government putting pressure on the Argentinian government to change that so that the iPhone can be sold more competitively.
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