updated 09:40 pm EST, Thu February 25, 2010
Shareholders should not expect dividends, buyback
Steve Jobs, speaking at the Apple's annual shareholder meeting, defended the company's $40 billion cash reserve and management of AAPL stock. The CEO pointed out that Apple is run conservatively regarding its finances, and "very fortunate" that acquisitions can be funded by writing a check and not worrying about borrowing money.
"Cash gives us tremendous security and flexibility," Jobs said. "When you take risks, it's like jumping up in the air, and it's nice to know the ground will be there when you land."
The CEO dismissed several suggestions regarding what the company could be doing with its cash, while jokingly responding to one shareholder that he would throw a "toga party" with the money before investing in the car maker Tesla. Jobs believes a dividend program or stock buyback would have little effect, if any, on the current stock price.
While many shareholders express a desire to rake in dividends on their AAPL holdings, others are satisfied by the stock's performance on the market. Shares have followed a fairly steady incline, growing from a 52-week low of $82 to reach a current price around $200.