This year has seen its fair share of major leadership transitions. After more than half a century at the helm, Berkshire Hathaway‘s Warren Buffett retired as CEO on Dec. 31. Similarly, Adobe‘s chief of 18 years, Shantanu Narayen, announced in March that he planned to step down once a new CEO is appointed.
But perhaps the biggest surprise of all was the April 20 announcement that Apple (NASDAQ: AAPL) CEO Tim Cook, who’s held the top position since August 2011, would step down on Sept. 1 and turn the proverbial keys over to John Ternus. Although Cook is staying aboard as the executive chairman of Apple’s board, the company’s day-to-day operations and its innovative trajectory will now be charted by Ternus.
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Since Cook was appointed CEO, Apple shares have soared by more than 2,700%, including dividends. While some investors will attribute these outsize gains to Cook overseeing iPhone innovation, a pivot to high-margin subscription services, and the launch of Apple’s generative artificial intelligence (AI) system, Apple Intelligence, his legacy should be defined by the nearly $879 billion investment he oversaw that had nothing to do with AI.
Apple’s now-former CEO bet big on his company
As of the closing bell on Aug. 28, $879 billion was greater than the market cap of all but 12 S&P 500 companies, one of which is Apple. In other words, Cook could have used this capital to purchase all but 11 other companies in the benchmark S&P 500.
Instead, Tim Cook and Apple’s board have spent $878.5 billion since the start of 2013 purchasing their most prized asset: shares of Apple:
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2013: $22.95 billion in buybacks
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2026: $62.094 billion (through the fiscal third quarter)
During Cook’s tenure as CEO, he oversaw a 44.5% reduction in Apple’s outstanding share count.
To say this aggressive buyback program had a positive impact on Apple’s stock or its bottom line would be an understatement. For companies with steady or growing net income, a decline in the number of shares outstanding can increase earnings per share, making it more attractive to fundamentally focused value investors.
