Apple creates Braeburn Capital Nevada asset-management firm

“Loaded with growing cash reserves, the computer maker has created an asset-management firm in a state with fewer taxes and looser ties with the IRS Apple Computer is breaking records with sales of its popular iPod music player — and has the coffers to prove it. Now the Cupertino, Calif.-based computer maker has come up with what could be a smart way to manage part of that swelling cash pile. Apple has set up a company based in Nevada with the purpose of managing its cash and short-term investments in a tax-advantageous manner,” Arik Hesseldahl reports for BusinessWeek. “According to public documents, Apple has incorporated Braeburn Capital, an asset management company based in Reno, (Nev.) Braeburn — named for a variety of apple that’s uniquely sweet and tart — will be a vehicle for managing Apple’s investment portfolio. By incorporating in Nevada, Apple will be shielded from certain taxes imposed by the state of California, according to a person briefed on the matter.”

“Apple’s cash reserve has nearly doubled over the last two years. At the end of 2005, Apple had $8.7 billion in cash and short term investments, about 15% of its market capitalization. That’s up 91%, from $4.6 billion, at the end of 2003. And it compares with much bigger rivals like Dell, which reported $9 billion in cash and short-term investments for the quarter ended February,” Hesseldahl reports. “An Apple spokesman said Braeburn will function as a regional treasury office, on par with existing offices in Cupertino, Singapore, and Cork, Ireland. He declined to comment on the tax implications or elaborate on Braeburn’s investment plans.”

Full article here.

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  1. Yes, Captain. Oh man, could the news be better for shareholders?! Apple is handling everything the right way nowadays. If they can accumulate enough through smart management someday the company’s cash reserve will grow larger than Microsoft’s (dream big) and then that company would be truly irrelevant. So glad I bought this stock, and it was no whim. Even if it tanks tomorrow I’ll always expect it to grow again because the company is smart. Okay, off my soapbox, now. Sorry.

    By the way, the debt point is a good one. Isn’t Apple debt free?

  2. I hate California. not because of the taxes, but because it turns good people bad. I guess the surfing and warm weather is nice on a vacation… but I would rather live anywhere than California. It’s just a bad place.

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