Warren Buffett and Apple Stock: Drowning In Cash

Sometimes, the news item that the finance media fixates on is, in reality, the biggest news item of all. The news story that Buffett has bought an additional 75 million shares of Apple stock, supplementing the position of 166 million million shares that Berkshire Hathaway owned as of the annual report, bringing the total ownership position in the iPhone-maker to just a little over 241 million shares.

What I have not seen reported is how the immense Apple cash position relates to Buffett’s investment–i.e. Apple is sitting on $285 billion in cash while Apple is divided into just a tad over 5 billion shares outstanding, meaning that each share of Apple that you buy contains $57 in cash.

Buffett, who has expended a little over $30 billion of Berkshire’s resources to buy shares of Apple now worth around $45 billion, has “look-through” pro-rata portion of Apple’s cash position in the Read the rest of this article!

Valeant’s Wise Name Change to Bausch Health

I was thinking about the news earlier today that Valeant Pharmaceuticals, the Canadian healthcare company that saw its stock price rise from $24 to $263 in the span of four years before cratering to a low of $8 in 2016, will change its corporate name to Bausch Health Cos. in July 2018.

This is clearly a no-brainer good move for the company. Brand names and intellectual property exist to serve you. If people pay a premium because of how they regard your brand, you should hold onto it for dear life (I cringe when I see investors throw away generations of good-will to name a business after themselves or to announce that a new sheriff is in town, as it throws away portions of the pricing power and customer base that had been acquired over time).

Conversely, if your brand has a negative value, and people don’t want to associate Read the rest of this article!