Editor’s note: This article was first published in September 2013, right after Apple unveiled the iPhone 5S and 5C, and reflects Carl Icahn’s view at that time. Icahn later pushed Apple for larger share buybacks and sold his entire Apple stake in 2016.
For billionaire investor Carl Icahn, Apple is very cheap, and investing in the company is, as he puts it, a no-brainer. Icahn told CNBC that the stock has a lot of room to grow and that, at its current price, it is very cheap by his numbers.
He considers it one of the best investments in his portfolio right now, so after the launch of the company’s new products he took advantage of the exaggerated drop in the share price to buy more shares.
Remember that Apple fell 2.75% on the day it unveiled its new iPhones, and more than 5% on the second day.
Icahn says that although the iPhone 5S and iPhone 5C have drawn criticism from consumers and investors, it does not worry him, because he believes Apple knows what it is doing with this strategy and remains one of the best brands in the world. He has complete confidence in Tim Cook and thinks nobody should tell him how to run the company.
Although he does not rule out the stock falling further in the very short term, he believes it will go much higher over time.
Featured image: Maurizio Pesce from Milan, Italia, CC BY 2.0, via Wikimedia Commons.
.jpg){kind=link}