Berkshire Hathaway — the investment firm belonging to Warren Buffett, one of Apple’s biggest cheerleaders in recent years — reduced its stake in the Cupertino tech giant last quarter.
According to a regulatory filing made this week, in Q4 2020, Berkshire Hathaway cut 6% of its Apple shares. By contrast it kept its Amazon shares steady, while growing its stake in T-Mobile by a massive 117%.
One of the things that always surprised me was how, compared to some of his Silicon Valley peers, Steve Jobs’ net worth during his life paled in comparison to some of his contemporaries.
When Jobs died in late 2011, his net worth was reported as being $10.2 billion. That’s an enormous amount of money, but it was a drop in the ocean next to Bill Gates’ $56 billion that year, and less than Google’s Sergey Brin and Larry Page’s $19.8 billion apiece, Michael Dell’s $14.6 billion, and Facebook’s Mark Zuckerberg’s $13.5 billion.
Had Jobs had the same share arrangement today, however, it would be a very different story.
Apple has sold $14 billion in bonds in order to tap into current cheap borrowing costs, Bloomberg reports.
This money will reportedly be used for buying back stock and paying dividends, as well as giving Apple more working capital.
Apple has come a long way this century alone. In 2001, Apple had yet to release the iPod, iTunes, the iPhone, iPad or Apple Watch. While the turnaround under Steve Jobs was underway, it was still in its earliest stages.
What has Apple’s ascension in the years since done to AAPL’s share price? On January 28, 2001, Apple — adjusted for splits and dividends — was trading at 30 cents a share. On January 28, 2021, Apple closed at $137.09. That’s an astonishing 45,697.7% increase!
December 12, 1980: Apple goes public, floating 4.6 million shares on the stock market at $22 per share.
In the biggest tech IPO of its day, more than 40 out of 1,000 Apple employees become instant millionaires. As Apple’s biggest shareholder, 25-year-old Steve Jobs ends the day with a net worth of $217 million. However, the big payday triggers internal tensions as it highlights Cupertino’s class divide.
Sometimes, when Apple passes a major financial milestone, I’ll have a pang of regret at not having invested all the money I could lay my hands on on Apple back in the mid-1990s.
But that’s far from the worst missed opportunity involving Apple investment. A new article for Fast Company tells the story of seven early investors who sold their AAPL holdings on the day of the company’s IPO in December 1980.
December 6, 2000: Apple’s stock price falls after the company posts its first quarterly loss since Steve Jobs’ return to Cupertino in 1997.
Shares tumble $3 to just $14 a share as doom-predicting pundits worry that the big Apple comeback might come screeching to a halt.
Little did they know….
When Apple holds its fiscal Q4 2020 earnings call on Oct. 29, can the company deliver another pandemic miracle?
We’ll all find out at 2 p.m. Pacific that day, when Apple live-streams its earnings call. (Actually, we’ll undoubtedly find out a half-hour earlier than that, when Cupertino issues its press release outlining its quarterly results).
Following last quarter’s record-setting results, Wall Street will be waiting with bated breath to see if Apple once again found a way to spin gold amid the economic disaster caused by COVID-19.
Tim Cook may well stay at the helm at Apple until at least 2025, according to SEC filings which detail the stock options that will vest in that time. Cook will receive 333,987 units of restricted stock options, vesting in thirds beginning April 1, 2023.
“For the first time in nearly a decade, we are awarding Tim a new stock grant that will vest over time in recognition of his outstanding leadership and with great optimism for Apple’s future as he carries these efforts forward,” Apple’s board of directors told Reuters.
After seeming to defy the general COVID-19 downturn, tech stocks have taken a dip as of late. Loup Ventures’ tech analyst Gene Munster thinks there is going to be a split in future fortunes — with some soaring back up to previous highs and others, well, not.
Apple, he believes, is going to be a big winner. And from my calculations he thinks it could be just a couple of years from another major financial milestone.
