The How Money Works video was decent, but I was annoyed he showed the Apple cash on hand chart without mentioning they peaked at ~100B, and the contracts we’re talking about are in hundreds of billions
Microsoft, for example, has about 100B in cash on hand. Their total liabilities have gone from about 2x their cash to 3x, which is effectively doubling the leverage
When you think about that additional debt in absolute terms, it’s huge. Historically companies wouldn’t be able to get to that level of debt simply because they lacked the cash to do so
The How Money Works video was decent, but I was annoyed he showed the Apple cash on hand chart without mentioning they peaked at ~100B, and the contracts we’re talking about are in hundreds of billions
Microsoft, for example, has about 100B in cash on hand. Their total liabilities have gone from about 2x their cash to 3x, which is effectively doubling the leverage
When you think about that additional debt in absolute terms, it’s huge. Historically companies wouldn’t be able to get to that level of debt simply because they lacked the cash to do so