Yes, I learned this fact painfully. I bailed on my IPO AMZN shares because they kept taking on massive debt. Just didn't have the stomach for it.
Of course, that was 2004, about 1/20 of today's price. <sigh>
Of course, that was 2004, about 1/20 of today's price. <sigh>
The interesting thing to me is that we know that Tim Cook (and other cash rich companies sorry to pick on Apple) cannot spend the money wisely. And they know it too. That's why it's sitting there, where "sitting there" is the best ROI they can think of so far. I think the existence of such large cash piles should worry us all more than it does.
* just kidding if I bought AMZN at IPO and sold it I'd take it pretty badly.
[1] thought of one. If you don't remember pets.com, you owe yourself a treat: https://en.wikipedia.org/wiki/Pets.com
https://www.youtube.com/watch?v=E0_tfoTTGOQ
At least the absolute $s weren't that big for me at the time. And the lessons formed a base of experience that served me well as I had more to invest. It's been much better since.