updated 08:09 pm EDT, Wed October 16, 2013
Investor praises Apple management
Investor Warren Buffett has dismissed fellow billionaire Carl Icahn's recent calls for Apple to expand its stock buyback. In an interview with CNBC, the Berkshire Hathaway chairman and CEO praised Apple's management and seemingly rejected Icahn's argument that the company should more than double its current buyback program to at least $150 billion.
"I think the Apple management and directors have done a pretty darned good job of running the company, and so my vote would be with them," Buffett said, as quoted by Barron's. "I do not think that companies should be run primarily to please Wall Street, and largely shareholders who are going to sell."
Apple has already promised to buy back $60 billion, however Icahn has aggressively pushed for the program to be increased because the stock is "extremely undervalued." The activist investor met with Apple CEO Tim Cook late last month to voice his argument in person, however the company has yet to budge from its current position.
Icahn earlier this year invested $1.5 billion in AAPL shares, representing a minor stake of less than one percent.