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How does hoarding cash increase the share price to generate those capital gains?

Shouldn't they be buying back their own shares?

The company's market cap will typically factor in the giant hoard of cash. As it increases, so does the stock.

Doesn't that contradict noego's ultimate point?

A company that has an extra $100MM in cash will have a market cap approximately $100MM higher than the same company without the extra cash.

noego's point is that that $100MM might be more valuable if freed up to invest in a risk-asset, but not that is has no value whatsoever.