Warren Buffett says Apple should buy back stock & build value, ignore Einhorn

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  • Reply 21 of 57
    apple ][apple ][ Posts: 9,233member

    Quote:

    Originally Posted by tkell31 View Post


    Bottom line if you believe in the company long term this is a nice chance to add shares at close to a 40% discount from the high (wow, that is a big drop), and if not what does it matter what they do?



     


    I believe in Apple, I always have, but I'm not exactly rushing to pick up any shares at the moment. Who knows where the bottom is? Valuation means nothing apparently, so nothing would surprise me. I wouldn't even be surprised if it dips below 400.

  • Reply 22 of 57
    lkrupplkrupp Posts: 10,557member

    Quote:

    Originally Posted by digitalclips View Post



    Well whatever Apple do I just hope, sooner rather than later, we see AAPL start going up again ... please ... pretty please!


     


    The drop in stock price is just fodder for the trolls. What if the stock drops to $300 or even $200? Does this put Apple out of business? Does this change the fact that Apple sells every single thing it manufactures? Does it affect sales or profits? No, all it means is the manipulators have found a new way to make money on AAPL. Even the nay-sayers wonder out loud why the stock has taken a beating in light of the reality of Apple's massive revenue and profit.This "Apple is doomed" crap is a figment of the iHater's imaginations and we enthusiasts should not take the bait.


     


    What really scares me is that Tim Cook and the leadership might succumb to the Wall Street drum beat of "sell more for less to survive." They might head for the quick fix philosophy of sacrificing margins and quality for market share growth. I personally want Apple products to remain special, unique, valuable, and top quality. I'm perfectly willing to pay the price. People who are used to the beige box, bottom of barrel cheap stuff can keep on buying their Dells, HPs, Samsung.


     


    If Apple ever becomes just another player in the game THAT's when they are doomed. Thats when I start considering other options.

  • Reply 23 of 57
    jragostajragosta Posts: 10,473member
    crowley wrote: »
    That's an analyst I respect.

    Buffett isn't an analyst. He doesn't make money by offering pundit advice to others. Rather, he invests his own money - and has grown his cash into one of the largest holdings on the planet. His success in investing is unquestionable. When he's right, he makes money. When he's wrong, he loses money. The fact that his wealth has grown so rapidly indicates that he's right far more often than he's wrong.

    Analysts, OTOH, simply spew words - and then are never held accountable when they're wrong.
    rogifan wrote: »
    And the stock is down another $6 so far today. I don't get what's causing these 1-2% drops seemingly every day.  At what point does it get low enough where it becomes a steal and people start buying again? 

    I would have thought we passed that point a long time ago, but obviously not. Apple's forward, cash adjusted P/E is 6-7 right now. The Wall Street average is over twice that. By ANY rational standard, Apple is far, far, far below where it should be. Even if you assume that it won't grow any faster than the Wall Street average, it should be trading at 16 times earnings (actually, more because of the 2.5% dividend yield).
  • Reply 24 of 57


    How low does AAPL have to go before management does something to stop the bleeding??? This is infuriating to say the least!


     


    They should be buying back shares, raising the dividend, and possibly splitting the stock. Of course, their future products need a WOW factor. 


     


    My patience is running out!

  • Reply 25 of 57
    sflocalsflocal Posts: 6,088member
    rogifan wrote: »
    And the stock is down another $6 so far today. I don't get what's causing these 1-2% drops seemingly every day.  At what point does it get low enough where it becomes a steal and people start buying again? 

    It will be low enough when Apple begins buying back shares. Then these analysts will then harp that its time to buy.
  • Reply 26 of 57
    slurpyslurpy Posts: 5,381member

    Quote:

    Apple Chief Executive Tim Cook should work on building his company's value, rather than worrying about pushing the stock price up on a daily basis, Buffett said in an appearance on CNBC's "Squawk Box" on Monday, as summarized by Apple 2.0. Buffett commented on Apple as part of a three-hour appearance on the program.

     


     


     


    Quote:


    Beyond that, he believes Apple's best strategy is to simply run its business well. If Cook can continue to do that, Buffett believes shares of AAPL will respond accordingly.



     


    First sane thing I've fucking read, as opposed to the rest of the shrieking internet, demanding Apple react irrationally to the stock and do random shit to bring it back up. I'm reassured that the top guys at Apple are cool and mature enough to ignore that noise. 

  • Reply 27 of 57
    jungmarkjungmark Posts: 6,926member

    Quote:

    Originally Posted by greendisease View Post


    How low does AAPL have to go before management does something to stop the bleeding??? This is infuriating to say the least!


     


    They should be buying back shares, raising the dividend, and possibly splitting the stock. Of course, their future products need a WOW factor. 


     


    My patience is running out!



     


    Then sell. Their future products don't need a WOW factor. They can keep on doing what they've been doing.


     


    Quote:

    Originally Posted by bdkennedy1 View Post


    I don't get where all of this advice for Apple is coming from. Apple never listens to analysts.



     


    Buffett isn't an analyst. He just offered an opinion. He isn't telling investors to sell/buy/hold.

  • Reply 28 of 57
    That's the difference between Buffet and Einhorn: one is a long term investor who seeks companies that create real value, the other belongs to the hedge fund mentality who is trying to game the system to make a quick profit.
  • Reply 29 of 57
    msimpsonmsimpson Posts: 452member

    Quote:

    Originally Posted by greendisease View Post


    How low does AAPL have to go before management does something to stop the bleeding??? This is infuriating to say the least!


     


    They should be buying back shares, raising the dividend, and possibly splitting the stock. Of course, their future products need a WOW factor. 


     


    My patience is running out!



     


    You should sell your Apple stock.  There are obviously much better investments for someone as sharp as you.

  • Reply 30 of 57
    apple ][apple ][ Posts: 9,233member
    Quote:
    Originally Posted by Suddenly Newton View Post

    That's the difference between Buffet and Einhorn: one is a long term investor who seeks companies that create real value, the other belongs to the hedge fund mentality who is trying to game the system to make a quick profit.

     

    There is one other difference also. Only one of the two actually holds any AAPL.

    If Buffet is all about valuation and buying into strong companies that create value for the longterm, then why doesn't he own any AAPL? I guess it must not look like a good proposition for him.
  • Reply 31 of 57
    msimpsonmsimpson Posts: 452member

    Quote:

    Originally Posted by Rogifan View Post


    I'd prefer this over some of the silly stuff we hear like Apple should buy Twitter, Netflix or Tesla.



     


    I really wish they would buy Groupon, Yahoo, and the Hello Kitty Corp.

  • Reply 32 of 57
    Finally a voice of reason regarding Apple's stock price.

  • Reply 33 of 57
    "Apple wrote:
    [" url="/t/156274/warren-buffett-says-apple-should-buy-back-stock-build-value-ignore-einhorn/30#post_2287436"]
    There is one other difference also. Only one of the two actually holds any AAPL.If Buffet is all about valuation and buying into strong companies that create value for the longterm, then why doesn't he own any AAPL? I guess it must not look like a good proposition for him.

    Do you always deny the antecedent?
  • Reply 34 of 57
    tomjavatomjava Posts: 11member

    Quote:

    Originally Posted by Apple ][ View Post


     

    There is one other difference also. Only one of the two actually holds any AAPL.If Buffet is all about valuation and buying into strong companies that create value for the longterm, then why doesn't he own any AAPL? I guess it must not look like a good proposition for him.


    Buffet doesn't own AAPL or GOOG or MSFT or IBM because he does not invest any tech businesses.  He states that he only invests when he knows and understands their business.

  • Reply 35 of 57
    dluxdlux Posts: 666member
    tomjava wrote: »
    Buffet doesn't own AAPL or GOOG or MSFT or IBM because he does not invest any tech businesses.  He states that he only invests when he knows and understands their business.
    And he also sailed through the dot-com bust without breaking a sweat.

    Buffett and Bill Gates are good friends (bridge partners, even), yet Warren doesn't own any Microsoft stock (that I know of). That should tell you something about his sticking to his investment principles.
  • Reply 36 of 57
    msimpsonmsimpson Posts: 452member

    Quote:

    Originally Posted by Dlux View Post





    And he also sailed through the dot-com bust without breaking a sweat.



    Buffett and Bill Gates are good friends (bridge partners, even), yet Warren doesn't own any Microsoft stock (that I know of). That should tell you something about his sticking to his investment principles.


     


    And here is whom Warren learned his investment principles from...  Benjamin Graham.


     


    http://www.amazon.com/Intelligent-Investor-Definitive-Investing-Practical/dp/0060555661/ref=la_B000APZXBQ_1_1?ie=UTF8&qid=1362427739&sr=1-1

  • Reply 37 of 57
    rogifanrogifan Posts: 10,669member


    Since the signs point to no new stuff until the summer at earliest I wouldn't be surprised to see the stock below $400 soon.

  • Reply 38 of 57
    anantksundaramanantksundaram Posts: 20,401member
    "Apple wrote:
    [" url="/t/156274/warren-buffett-says-apple-should-buy-back-stock-build-value-ignore-einhorn/30#post_2287436"]

    There is one other difference also. Only one of the two actually holds any AAPL. If Buffet is all about valuation and buying into strong companies that create value for the longterm, then why doesn't he own any AAPL? I guess it must not look like a good proposition for him.

    Buffett does not invest in tech. He's not even invested in his best friend's (Bill Gates's) company.

    (See that a couple of others noted this too.)
  • Reply 39 of 57
    srangersranger Posts: 473member


    Why listen to the guy who has probably made more money in the stock market that anyone else.....????


     


    Hedge fund guys are so  much more reliable....

  • Reply 40 of 57
    anantksundaramanantksundaram Posts: 20,401member

    Quote:

    Originally Posted by sranger View Post


    Why listen to the guy who has probably made more money in the stock market that anyone else.....????



    Not just 'probably'.... (in nominal terms, of course) image

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