Warren Buffet had an interesting piece of advice for Apple’s CEO Tim Cook on the recent note by Hedge Fund manger David Einhorn, “Ignore it!”. Buffet said that any good company cannot always function to please investors and aim only at pushing the stock price higher every day. Buffet’s very own Berkshire has lost 50 percent of its stock price four times in its history said Buffet. All Tim Cook needs to do right now is to push value of the company by innovating as it is doing now and the share price will be taken care of by itself.
Warrent Buffet said that this is the right time for Apple to buy back its stock as the stock price is really down currently. Apple has around $140 billion in hand currently and it is a wise move if Apple can buy back its stock. Apple late CEO Steve Jobs was given a similar suggestion but Steve failed to execute the move. One of the major reasons for the huge pile of cash for Apple is that almost 2/3 of Apple’s income hasn’t been taxed yet as it is in overseas right now.
Source: Fortune