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TheStreet Open House

5 Cash-Rich Companies to Buy This Fall

Stocks in this article: BRK.BGOOGAAPLCSCOMSFT

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?

>>5 Stocks Insiders Love Right Now

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.

 

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