DEC 2008, Top 4 Cash-rich 的金融機構

Top 4 Cash-rich 的金融機構:

1.Berkshire Hathaway（巴郡）,淨現金量1,060億美元（約8,268億港元
2.中國銀行 （3988）, 淨現金量1,010億美元（約7,878億港元）
3.中國工商銀行（1398）, 淨現金量890億美元（約 6,942億港元）
4.中國建設銀行（0939）, 淨現金量820億美元（約6,396億港元）。

Buffett and China banks top cash-rich list

Twenty of the largest listed companies in the world are sitting on a combined cashpile of $570bn, demonstrating how some of the world’s biggest groups retain substantial firepower in the current downturn.

However, only 29 of the top 100 global companies by market value have net cash, according to analysis by the Financial Times. But those that do should be in a strong position in a severe downturn that is causing companies to scramble to conserve cash.
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The list is led by four financial institutions with Warren Buffett’s Berkshire Hathaway at the top with $106bn in net cash, defined as cash and short-term investments or marketable securities minus debt. Strikingly, the next three positions are filled by Chinese banks with Bank of China, ICBC and China Construction Bank having $101bn, $89bn and $82bn, respectively, according to data from Bloomberg.

Executives and analysts are divided on what cash-rich companies are likely to do with their money. Some believe that with company valuations at a relative low compared with recent years the time is ripe for acquisitions.

“If you have the cash, there are some unparalleled opportunities out there. You have rock-bottom prices and some very willing prices,” said Steve Frobisher, a senior strategy consultant at PA Consulting.

But Philip Isherwood, European equity strategist at Dresdner Kleinwort, disagreed: “Obviously the banks are hoarding cash, so why shouldn’t the corporates?” He argued that acquisitions tended to be pro-cyclical and relied on the strength of the equity market. “It is all about confidence. Will banks remain cautious? Probably. Will corporates remain cautious? Probably too,” he added.

Berkshire is one of the exceptions, having already invested in blue chips such as General Electric and Goldman Sachs.

Some other cash-rich companies have looked to take advantage of the relatively low valuations by boosting share buybacks or trying to buy rivals. Microsoft has done both while Roche, the Swiss pharmaceuticals company, is currently bidding to take over Genentech.

However, investors, who were only recently crying out for cash to be returned to them through buy-backs, are now more ­sanguine. “It is the understatement of the year to say I would rather have a company with a high net cash position than with debt, and we’re being more relaxed with managements in that situation,” said a leading European investor.

The FT analysis was based on the 100 largest companies by market capitalisation and did not include privately owned or smaller groups.