Tim Cook: Apple Buybacks Benefit "Almost 50%" of American Households

After pulling back on its share repurchasing activity in 2018's fourth quarter due to badly missing its revenue forecast, Apple (NASDAQ:AAPL) has ramped its buybacks up again. The Mac maker repurchased $24 billion worth of its stock last quarter, consisting of $12 billion in open-market purchases as well as a $12 billion accelerated share repurchase program. That was more than Apple repurchased in any quarter of 2018, during which the company bought back a jaw-dropping $71 billion worth of shares in an effort to distribute some of its tax-overhaul related windfalls.

Cook also briefly talked about Apple's repurchase program, which has a slew of benefits like earnings accretion, dividend savings, and getting closer to an optimal capital structure. Buffett has always been a big fan of Apple's buyback program and has given input to Cook over the years. Cook recalled a phone call he had with Buffett to discuss the topic: I still remember it. He said, he goes, "Let me just cut through it. If you believe your stock is undervalued, you should buy your stock." And I thought that was just the simplest way of looking at it. So here's what we do is, we first and foremost take care of our people, and we take care of the company and the future of the company.

Source: Motley Fool

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