Warren Buffet is one of the most successful investors in the world. He always has an unusual reaction to things as prosaic as buying an iPhone. He has managed to amass a fortune greater than the GDP of many countries. The best part is that he made everything from scratch.. His parents were supermarket cashiers, he studied all his life in public schools and began going into business on his own and at his own risk. I have felt it.
We’ve already explained this before, but Tim Cook is the reason Warren Buffet decided to buy Apple stock. Until 2016, the investor had not acquired shares of any technology company. He believed it was a very volatile market and did not consider it stable enough for his investment. However, his vision changed when he saw Tim Cook as CEO, to the point that his most important position was precisely at Apple:
“Tim may not be able to design a product like Steve, but Tim understands the world to a degree that very, very few CEOs I’ve met over the last 60 years could match.”
One of the best stock market transactions in history
Let’s go back a little. In 2012. Tim Cook had just been named CEO of Apple less than a year ago, and after a long conversation with Warren Buffet, he gave him advice that surely changed the way Apple works.
“Let me explain: If you think its stock is undervalued, you should buy it.”
This comes from the fact that, during the call, Tim Cook reportedly told Buffet that he thought Apple shares were trading at a lower price than they should be.. Apparently Tim didn’t understand. However, the investor’s advice is logical: it is the best way to revalue and protect the company from volatility. This is actually something governments do when they protect certain businesses during times of shortage.
If you think your stock should rise and your company has a lot of money tied up in the bank, buy it. If they raise the price later, that’s what you get. It is the living expression of this famous saying of “Act rather than talk”which is nothing other than saying that you have to be consistent with what you say.
Cook listened to him, which then prompted Warren Buffet to start buying Cupertino stocks. In fact, this simple advice could have led to one of the best stock market operations in history.
1,000 percent growth
In 2012, Apple’s stock price closed at $16.32. At the time of writing, it is trading at 163.73 and has reached a high of 176.15. For sale today, they would get 1000% profits. Nothing bad. Considering the number of shares that Apple would have purchased at that time, the move would have been round.
Interestingly, Buffet gave the same advice to Steve Jobs a few years earlier, and he rejected it. It is not clear what the reason was. Maybe it had to do with his personality: Steve didn’t care so much about purely economic growth. What he wanted was to change the world, and it is possible that he thought that the money the company had would be better spent investing in innovation than in stocks. Either way, this is just speculation, although it would make sense.
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