What else should they do with it? Just hold it so that they can hedge against future problems? How much do they need for a hedge? 1 year of expenses? 2 years? 5 years?
What should they do once they reach your hedge number? Just keep hoarding?
What do you do with your salary? Do you just put it in your bank account or do you invest it? If I’m Apple, do I really want to become a company with an investment arm? If I’m an Apple shareholder, do I really want Apple buying a broad market index fund and then paying corporate taxes on that and then spitting off dividends to me rather than just giving me the opportunity to invest in a broad market fund myself?
What should they do once they reach your hedge number? Just keep hoarding?
What do you do with your salary? Do you just put it in your bank account or do you invest it? If I’m Apple, do I really want to become a company with an investment arm? If I’m an Apple shareholder, do I really want Apple buying a broad market index fund and then paying corporate taxes on that and then spitting off dividends to me rather than just giving me the opportunity to invest in a broad market fund myself?