Nintendo is profitable again. 220 million in Q2, 4.5 billion in the bank (Excluding assets?)

[SwooshX]

aikohualda said:

SwooshX said:

aikohualda said:

SwooshX said:
Keeping $20 billion in cash just sitting there would be fairly stupid. A person who has $2 million in cash doesn't just let it sit in the bank account either. You invest it.

having a cash reserve is not fairly stupid... money is the most liquid in the company.... if something happens... let's say gaming world crumble in the next 3 years... nintendo would be easier to reinvent themselves using an actual money unlike... selling your investment to a lower value (most of the time)

Having that much of a cash buffer is ridiculous especially for a game-only company. Especially with the stock market way up over the last two years, you're losing money by just letting it sit there. 

who says thats much???? if their total asset is 10 b... you know who doesn't have much cash reserve though? the one who liquidate building to compensate for the lack of liquid cash

You're talking my comment out of context, I'm not comparing it to Sony. Having a cash buffer for a company is good, but at some point it's an irresponsible use of money to have it just sit there earning nothing when it could be invested in say stocks (which are also fairly liquid, you can liquidize stocks in a few days if you want) and be earning an additional return rather than just sitting there. Especially in a period of time where the stock market has been climbing overall like crazy the last two years. 

Nintendo has a lot of their money tied up in securities too, because they know having it all just in cash makes no sense. But people sometimes don't understand this and think the money in the bank just "dissapeared" when infact it's just been invested somewhere else (ie: Nintendo invested a ton of money into repurchasing shares from Yamauchi's family, that just means that money in the bank transferred into a different form, not that it dissapeared).