Paying a dividend and burning down our war chest would jeopardize
all of that.
You see, one day a competitor will come along and cut our core
product line out from underneath us. We will need all the cash we
can muster to fend them off. When that cash is done, we will
mortgage the company. The first several times we may be
successful. However, as is always the case, eventually time will
get the best of us and we will be unable to meet our creditors
We will go bankrupt. Our creditors will seize the equity and the
shareholders will be left with nothing and having made zero return
on their investment.
Apple should pay its shareholders a dividend because it’s on a course for inevitable bankruptcy. OK. This is why I drink.