How Firms Will Spend Their Cash In 2016

HFA Padded
Rupert Hargreaves
Published on
Updated on

S&P 500 firms are sitting on a record amount of cash. Cash balances total $1.5 trillion (excluding financials), which works out as 11% of total assets. And according to Goldman Sachs, S&P 500 firms will spend a total of $2.2 trillion in cash during 2016, allocating 54% to growth spending and 46% to shareholder returns. All in all, S&P 500 cash use will increase by a modest 5% during 2016, with spending on investments growing by 3% and returns to shareholders rising by 7%. Lower oil prices coupled with the global economic slowdown will continue to weigh on capital spending…

This content is exclusively for paying members of Hedge Fund Alpha

Log In

Insider Strategies and Letters to Shareholders from the Top Hedge Funds and Maximize Your Portfolio Growth with Hedge Fund Alpha

Don’t have an account?

Subscribe now and get 7 days free!

HFA Padded

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk