Apple Buyouts Benefit "Nearly 50%" of US Households – The Fool Motley

After reducing its share buyback activity in the fourth quarter due to a glaring lack of revenue forecasting, Apple (NASDAQ: AAPL) recovery with its redemptions in the first quarter. The Mac manufacturer bought for $ 24 billion of stock in the last quarter, or $ 12 billion of free market purchases as well as an accelerated stock buyback program. $ 12 billion. That's more than what Apple bought back during a quarter of 2018, which saw the company buy back $ 71 billion in jaws, thanks to tax reform.

These returns can benefit more people than you think.

Cook on the redemptions

CEO Tim Cook attended the Berkshire Hathaway Annual meeting this weekend, the conglomerate Warren Buffett being one of the major shareholders of Apple. During an interview with CNBC at the meeting, Mr. Cook addressed a wide range of topics, such as his initial reaction when Buffett had taught Apple to invest in the way Apple addresses acquisitions, among others. The tech technician even released a new iOS game based on Buffett's work in childhood: providing newspapers.

Cook also spoke briefly about Apple's buyback program, which offers a host of benefits such as increased earnings, dividend savings, and alignment with an optimal capital structure. Buffett has always been a big fan of Apple's buyback program and has contributed to Cook over the years. Cook is reminded of a phone call with Buffett to discuss the subject:

I still remember it. He said, he's going, "Just let me cut through, if you think your stock is undervalued, you should buy your stock." And I thought it was just the easiest way to see things. So what we do is that we care first and foremost about our employees, the company and its future.

Once upon a time, Buffett, the same argument as Steve Jobs, but unfortunately Jobs did not consider this advice. Jobs preferred to accumulate money for a rainy day. Cook, on the other hand, is willing to rely on the experts if necessary. "And when I have no experience in anything, I always make a list of people I think are the smartest people I can contact to talk to them and get advice," Cook said. "And Warren was at the top of the list."

Given its size and presence in most major stock indexes, nearly half of US households own Apple stocks, according to Cook's estimate. "We are lucky to find that by buying our shares, we believe that almost 50% of US households own Apple stocks, directly or indirectly through indexes, mutual funds, etc." , said Cook. "And so it helps everyone or helps a lot of people."