The answer is very simple. Invest in companies that pay dividends, like telcos, electrical utilities, steel mills, railroads and other giants of the the 20th century. Note that you wont get any stock appreciation to speak of. Tech companies that dont invest in new markets die when competitors make the move. Apple might very well be dead if it tried to live of the Mac franchise.
Companies are allowed to keep their income so long as it is necessary for their business. You might think that a mom and pop store would be allowed to keep millions in cash, but since that kind of money isnt necessary for the operation of the business the excess gets taxed at 80%. (My info is old so the exact percentage may be out of date.) Large tech companies like Microsoft and Intel pay nominal dividends to keep the Federales at by, not out of generosity to their stockholders.
"Tech companies that dont invest in new markets die when competitors make the move."
He moves on to say that these tech giants usually end up dying anyway, so he is suggesting they "die with dignity" or at least realize when they should stop growing into new markets tangential to their core competency.
Companies are allowed to keep their income so long as it is necessary for their business. You might think that a mom and pop store would be allowed to keep millions in cash, but since that kind of money isnt necessary for the operation of the business the excess gets taxed at 80%. (My info is old so the exact percentage may be out of date.) Large tech companies like Microsoft and Intel pay nominal dividends to keep the Federales at by, not out of generosity to their stockholders.