What do large companies like Apple and Microsoft do with all the profit they acquire?
They pay shareholders a dividend on their investment, put money in R and D (research and development), acquire companies that are a strategic fit, expand into new areas and offerings as well as build a cash fortress to protect in the event of a potential downturn. This massive reserve not only helps them withstands a downturn more importantly it also allows them to buy the weak companies in an economic downturn.
