How Firms Will Spend Their Cash In 2016

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Rupert Hargreaves
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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…

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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