How Should Companies Use Cash Piles in 2015?

The transcript discusses the importance of cash management and investment strategies, emphasizing the value of cash dividends over stock buybacks. It highlights the role of CFOs in managing cash amidst low interest rates and explores where to deploy money in the current market. The discussion also covers expected returns from stocks and the importance of strategic investment decisions.

What is Mario Gabelli's stance on share buybacks?

• He prefers stock buybacks over cash dividends.

• He believes they are detrimental to companies.

• He thinks they are a good thing and here to stay.

• He agrees with finance academics on their value.

Why might CFOs feel pressured to recapitalize?

• To increase stock buybacks.

• Due to high interest rates.

• To reduce company cash reserves.

• Because of pressure from boards and shareholders.

What is a potential benefit of holding a large cash reserve?

• It allows for immediate investment in any opportunity.

• It guarantees high returns.

• It reduces the need for financial advisors.

• It provides flexibility for future opportunities.

What is the significance of a 10% earnings yield?

• It indicates a low return on investment.

• It suggests a high price-to-earnings ratio.

• It means the company is not profitable.

• It represents a strong return relative to stock price.

What is a key consideration for investors who have missed market opportunities?

• Timing and strategic deployment of cash.

• Focusing solely on cash dividends.

• Investing in high-risk stocks.

• Avoiding all stock market investments.