Investor Warren Buffet, recently the world’s richest man, seems to think that Apple stock is going to do just fine.
Asked on CNBC’s Squawk Box about Apple, its depressed stock price, and the fantastically large $137 billion cash stash that is bulging Apple’s back pocket, Buffet seemed to suggest that its stock is a good buy, although he doesn’t own any himself.
“If you could buy dollar bills for 80 cents, it’s a very good thing to do,” Buffet said.
That’s a generically true statement, of course. But Buffet said it in the context of recounting a conversation with Steve Jobs some years ago about what Apple should do with its rainy-day fund, and when answering a question about what Apple should do with all that money.
Apple’s stock value, of course, has slid a couple hundred billion dollars since the heights of September.
Years ago, Buffet had advised Steve Jobs to buy back Apple stock. It seems he would advise current Apple CEO Tim Cook to do the same, but he did add something just a little bit different: “The best thing you can do with a business is run it well, and the shares will respond.”
One other tidbit that Buffet shared: Part of the reason that Apple has so much tax is that “two-thirds of it has not yet been taxed,” which seems to be a common refrain around the tech world these days.