Author Topic: AAPL - Apple Inc.  (Read 1299670 times)

DooDiligence

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Re: AAPL - Apple Inc.
« Reply #6380 on: August 01, 2018, 04:27:27 PM »
I'd rather own (almost) anything through Berkshire, rather than directly.

This may be fuzzy logic but don't we, kind of, get Apple at 1.3 +/- book?

No.  You get Apple at the market price, plus a current premium of ~30+%, plus you owe another layer of corporate taxes on gains that have already occurred and future corporate taxes on any additional gains that may occur.  Most investments are worse inside Berkshire, even for Warren (especially for Warren), which is why Charlie scoffs when writers call Berkshire one big tax avoidance scheme by a hypocritical liberal.  Luckily for you, cash dividends are unlikely - because if Berkshire were to pay out any of those Apple gains in actual cash to you as an owner you would once again pay another layer of tax on that cash.

(you also pay this premium for cash on the balance sheet, btw)

What you do get by owning investments through Berkshire is unique, attractive leverage to offset some of the above negatives.  The main reason to pay any premium to Book Value at Berkshire is the value of the operating subsidiaries and the value of the float/insurance businesses.  There is also occasional access to opportunities not available to commoners.  And some would say that there is a Berkshire system, reputation and corporate culture that has some value above liquidation value as well..

Great explanation.

Fuzzy logic will get me into trouble some day  ;)
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Dynamic

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Re: AAPL - Apple Inc.
« Reply #6381 on: August 02, 2018, 07:23:58 AM »
Everyone's so keen to post the $1 trillion company headline!

SeekingAlpha just notified me and the article was gone by the time I clicked.

I expect yesterday's share count released (4,829,926,000 shares of common stock, par value $0.00001 per share, issued and outstanding as of July 20, 2018) wasn't taken into account so they pulled it.

On that basis $207.04251 is now the magic stock price on the assumption of no further stocks being retired, so still a little way to go!

rkbabang

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Re: AAPL - Apple Inc.
« Reply #6382 on: August 02, 2018, 10:48:47 AM »
Everyone's so keen to post the $1 trillion company headline!

SeekingAlpha just notified me and the article was gone by the time I clicked.

I expect yesterday's share count released (4,829,926,000 shares of common stock, par value $0.00001 per share, issued and outstanding as of July 20, 2018) wasn't taken into account so they pulled it.

On that basis $207.04251 is now the magic stock price on the assumption of no further stocks being retired, so still a little way to go!

It's above that right now

rkbabang

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Re: AAPL - Apple Inc.
« Reply #6383 on: August 03, 2018, 08:58:05 AM »
Nice visualization of Apple's market cap
https://nyti.ms/2n52hff

Liberty

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Re: AAPL - Apple Inc.
« Reply #6384 on: August 10, 2018, 07:23:07 AM »
https://daringfireball.net/2018/08/doug_field_returns_to_apple

Quote
Doug Field — who left Tesla in May after overseeing Model 3 production — has returned to Apple, working in Bob Mansfield’s project Titan group. Apple spokesperson Tom Neumayr confirmed with me only that Field has returned to Apple, but no one should find it surprising that he’s working on Titan.

Field previously worked at Apple as a VP of Mac hardware engineering before leaving for Tesla in 2013. So he spent years working closely (and successfully) with Mansfield on Mac hardware, and spent the last few years as senior VP of engineering at the world’s premier electric carmaker. That makes Field a seemingly perfect fit for Titan.
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LC

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Re: AAPL - Apple Inc.
« Reply #6385 on: August 14, 2018, 12:00:20 PM »
Anyone want to buy some CRE in silicon valley? Apparently its being valued cheaper than an iphone:

https://www.businessinsider.com/apple-trying-to-reduce-cupertino-tax-bill-2018-8

Apple is reportedly arguing that buildings at its headquarters are worth just $200 so that it can reduce its tax bill
"Lethargy bordering on sloth remains the cornerstone of our investment style."
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