BALTIMORE (Stockpickr) -- It's time to make the move to cash for your portfolio. I'm not talking about liquidating your stocks. Instead, I'm talking about buying the cash-rich companies that are presenting themselves right now.
So how much cash do your stocks come with?
Investors are shouting "show me the money" at companies right now, and for good reason -- there's more cash sitting in corporate coffers at this time than ever before. When the market's rife with risk, cash provides quite a bit of safety. So it's no big shock that seeking it out can provide some attractive risk-reward tradeoffs this fall.Cash is a big deal because it's easy to value. While a nuclear power plant or a tire factory may have market values that fall in a wide range, a firm's checking account is pretty easy to get a handle on. And when that cash balance starts to balloon, it effectively provides a massive discount for shares. In short, cash provides options. Firms with cash can opt to increase shareholder value by paying a dividend or initiating a share buyback. Plus, they have the ability to take advantage of pricey M&A opportunities and internal investments. >>5 Stocks Poised for Breakouts Firms without cash can't. The power of cash in your portfolio is a recurring theme. Since we last took a look at cash-rich firms back in March, the five names I talked about rallied an average of 11.6% -- that's around a third better performance than "buying the market" would have earned you. Today, we'll focus in on five of the firms that carry the biggest cash and marketable investment balances for investors.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV