Jobs Asked Buffett What to Do With Apple's Cash But Didn't Take His Advice

Jobs Asked Buffett What to Do With Apple's Cash But Didn't Take His Advice

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Warren Buffett revealed that Steve Jobs asked him what to do with Apple's cash but ended up not taking his advice during a live appearance on CNBC's Squawk Box this morning.

"It was an interesting conversation because I hadn't talked to him in a long time. He said, 'We've got all this cash. What should we do with it?' So we went over the alternatives. It was kind of interesting."

Buffett says there are only four things to do with cash: stocks buybacks, dividends, acquisitions, or "sitting with it."

"I went through the logic of each thing. He told me they would not have the chance to make big acquisitions that would require lots of money... And then I asked him the question, I said .. 'I would use it for buybacks if I thought my stock was undervalued.' And I said, 'How do you feel about that?' The stock was 200-and-something. He said, 'I think my stock is very undervalued.' I said, 'Well, what better to do with your money?' And then we talked awhile. And, he didn't do anything, and of course, he didn't want to do anything. He just liked having the cash. It was very interesting to me because I later learned that he said I agreed with him to do nothing with the cash. (Laughs.) He didn't want to repurchase stock although he absolutely felt his stock was significantly underpriced at two-hundred and whatever it was then."

Check this or this out to get an idea of just how much cash Apple has.

Read More [via CultofMac]


Jobs Asked Buffett What to Do With Apple's Cash But Didn't Take His Advice
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AJ
AJ - February 29, 2012 at 2:20am
I'm really surprised that Buffet didn't tell Jobs to give all that dough to charity.
Bj
Bj - February 28, 2012 at 9:05am
Seems to me there are a lot of android users here who just hates whatever comes with the brand apple.
WaterLily
WaterLily - February 28, 2012 at 3:16am
You judge a man on how much he earns? LETS ask you how much you earn and compare who the loser is.
Drkztan
Drkztan - February 28, 2012 at 12:40am
Foxconn's workers are amongst the best paid in china, regular tard. And If you read carefully, it says apple's money, not jobs'
Russell
Russell - February 28, 2012 at 1:05am
Best paid but worst working conditions because of Apple! The deplorable working conditions in China are the result of Apple's constant pressure on the suppliers to increase productivity while reducing costs. Apple insists on knowing the supplier's cost of the parts and labor. Apple then decides how much profit they(the supplier) can have. A year later, Apple will demand a 10% price cut. The suppliers start cutting corners, exposing their workers to dangerous and sometimes fatal working conditions. Chinese workers urge Apple to act on n-hexane poisoning "From when hexyl hydride was used, monthly profits at Apple and Wintek have gone up by tens of millions every month, the accumulated outcome of workers' lives and health," said the letter, signed by five workers claiming to represent employees. http://www.guardian.co.uk/world/2011/feb/22/chinese-workers-apple-nhexane-poisoning In China, Human Costs Are Built Into an iPad “Apple never cared about anything other than increasing product quality and decreasing production cost,” said Li Mingqi, who until April worked in management at Foxconn Technology, one of Apple’s most important manufacturing partners. “Workers’ welfare has nothing to do with their interests,” he said. http://www.nytimes.com/2012/01/26/business/ieconomy-apples-ipad-and-the-human-costs-for-workers-in-china.html
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