The CEO of Apple reportedly passed a huge milestone: He’s now a billionaire. Tim Cook’s net worth has risen significantly, partially as a result of Apple stock more than doubling in value in the past 12 months.
But Cook is not likely to stay a billionaire. And not for the reason you might think.
Apple’s stock buybacks in Q1 totaled more than any other S&P 500 company by a wide margin. The iPhone maker poured $23.8 billion into purchasing its own shares, more than it has ever done before. And that’s saying a lot, as Apple been spending billions on buybacks for many years.
Apple stock price has dropped steadily throughout June. That likely bothers short-term investors, but not Tim Cook. Apple’s CEO thinks long-term, and says planning no farther than the next quarterly earnings report is a recipe for disaster.
“If you’re making a decision based on the short term investors, you’re going to be guaranteed to be making terrible decisions,” Cook said yesterday.
Apple stockpiled $252.3 billion overseas, but it’s bringing that money back to America. A market analysts predicts the company will spend $100 billion of it on its stock buyback and dividend program. This will directly benefit those with Apple shares.
The company decided to bring the money home from foreign banks after the new GOP tax law gave companies a limited time for cash repatriations at lower rates, possibly just 8 percent.
Apple hosted its annual shareholders meeting today at the company’s headquarters in Cupertino where a number of new proposals were presented by investors before Tim Cook took questions from the audience.
During his Q&A session, Tim Cook discussed how Apple plans to fight for net neutrality. He also assured shareholders that Apple plans to come out with new products that appeal to professionals and creatives, but insisted that the Mac and iPad aren’t destined for a merger.
Aided by a increased confidence rating from Goldman Sachs, Apple shares hit an all-time high today, with the price jumping to $133.76 per share before closing just above the company’s previous record of $132.54, set on May 17, 2015.