The concept of “cash is king” has often been associated with investment strategies. It now appears that the importance of cash as an incentive is becoming a larger factor in attracting business investment.
For example, at first glance, it would seem that Wisconsin’s successful bid for Foxconn’s first major U.S. manufacturing facility was smaller than some competing bids. The critical difference: cash.
Historically, States and communities have focused on tax incentives, job training programs and infrastructure improvements. These are nice, but apparently cash is nicer.
Investors attempting to handicap the bidding wars for the proposed new Amazon headquarters building may want to consider the relative importance of cash in the various proposals.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA®