Fun fact: Of the Fortune 500 companies, Apple has enough cash buy 460 (video)

The Reformed Broker’s Josh Brown and The Irrelevant Investor’s Michael Batnick have fun spending Apple’s gravy.

From Batnick’s “Apple is a Large Company” posted Tuesday:

If we expand our definition of cash to include current and non-current marketable securities, think bonds, then they have $195 billion in cash. You know $195 billion is a lot of money. It doesn’t need context. So I won’t tell you how many companies in the S&P 500 it could buy with all that cash. Just kidding. The answer is 460.

Apple isn’t hoarding cash because they’re preparing for the apocalypse. They literally cannot distribute it fast enough to their shareholders. Over the last five years, they’ve spent a quarter of a trillion dollars on buybacks and dividends.

But the money just keeps piling up, and they’ve gotta do something with it… Josh and I are going to talk about what Apple’s next move should be and much more on tonight’s WAYT (What Are Your Thoughts):

Cue the video. The Apple section starts at the 28:33 minute mark.

My take: Fun YouTube format. If only it were 100% Apple. Thanks to MacDailyNews for the link.

15 Comments

  1. Miguel Ancira said:
    Josh is great. So…..when do the buybacks slow down and the dividends ramp up?

    2
    July 22, 2021
    • John Konopka said:
      At several shareholders meetings Tim Cook has spoken about dividends. He has said that they will increase every year. He has said that special one-time lump sums are not a good idea. Before they started paying dividends again I asked a question about dividends. Tim was not much in favor of them mostly for tax reasons if I recall correctly. So overall, my take is that they feel dividends are a good idea but they are not interested in pushing dividends very high quickly.

      Bloomberg picked up Tim’s reply. Maybe we could find it. This was some years back.

      0
      July 22, 2021
  2. Romeo A Esparrago Jr said:
    Just kidding but funny if they could buy certain companies, shut them down, and give the money back to the shareholders. 😉 LOL

    9
    July 22, 2021
  3. Jerry Doyle said:
    One important reason that I am invested in Apple is the security of my holdings. Apple is a “cash cow” run by well discipline and responsible leadership. They do not spend money irresponsibly. Apple continues in many ways as a growth company yet, affords the investor the security of a value play. The uncertainty of Apple is less than that of the US government when you consider the repetitive change in political leadership along with the organized political chaos running our government. In summary, with the current Apple leadership, I feel more secure and protected with my investment in the company than with my investment in our government’s treasuries. That doesn’t say much about our government’s political leaders from both political parties running the country, but it does say volume about Apple’s leadership.

    6
    July 22, 2021
  4. Kirk DeBernardi said:
    Talking heads proposition:

    Apple can buy 460 other companies.

    Nice.

    Better proposition:

    Apple continues to buy itself.

    Much nicer.

    4
    July 22, 2021
    • Gregg Thurman said:
      @Kirk. Think about what you just said. WS is enamored with the BIG acquisition, and has a list of firms it thinks Apple should buy. The deal is though, that with enough cash (no fancy and complex acquisition financing) Apple could buy any of 460 of the S&P 500 firms, but finds more value in buying its own stock, all the while analysts such as Sacconaghi denigrate AAPL’s price.

      The absolute best AAPL analyst is Apple itself.

      7
      July 22, 2021
      • Kirk DeBernardi said:
        @ Gregg Thurman —

        Spot-on Gregg. Couldn’t agree more.

        Kinda the beautiful full-circle of owning AAPL.

        0
        July 22, 2021
  5. Michael Goldfeder said:
    Those that understand Apple, especially this entire group, can sleep at night regardless of what happens to roil the markets. The buyback plan covers every point on the compass and no other company EVER can make that claim.

    The biggest problem for Apple long term holders, most notably those here that will be participating in the upcoming 3rd Quarter “Smackdown”, is trying to nail down the actual EPS number given the amazing opportunity of having the share price stuck in the mid 120 range for 4 1/2 months beginning with February through the first half of June this year. How many shares did Luca retire from the float with that unexpected gift?

    I’m expecting it resulted in quite the windfall for everyone regardless of whether they submit figures to PED or not.

    As Joseph Bland has been saying for quite some time, the real PE for Apple is undergoing the greatest transition of all everyday in their EPS with ongoing buybacks hidden in plain view.

    6
    July 22, 2021
    • Kirk DeBernardi said:
      @ Michael Goldfeder —

      Savoring your talking points, Michael.

      Beautiful.

      1
      July 22, 2021
    • Gregg Thurman said:
      especially this entire group

      What we have here are a bunch of mini Buffett’s.

      6
      July 22, 2021
  6. Gregg Thurman said:
    Another “fun fact”. According to my historic performance chart (10-year data sample), AAPL is going to peak the week of August 27, then decline from about $180 to about $153 over the following 3 weeks, then will finish the period (earnings to earnings) at about $157. Who knows why, or if it will happen again?

    3
    July 22, 2021

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