How Do You Eat The Elephant In The Room? On Bite At A Time…
Apple has a market capitalization of over $2,000,000,000,000. Warren Buffett, through one vehicle or another, owns about 5% of the company. So even though he eats disgusting McDonalds food and horrifying Coke products, but at least at Warren’s Buffet you can eat a poison apple too. Buffett is actually infamous for having a flip phone and telling people to only invest in what you know. So exactly what is it that Apple does which Warren Buffett, the jolly old billionaire, understands? He has no concept of the internet, manufacturing hardware products, what it takes to produce any media or art on the Apple devices, marketing in traditional or digital advertising channels…I mean how is Buffett a value add for AAPL shareholders? Apple is an overvalued, bloated, disproportionately weighted index drowner.
Apple is just like Berkshire Hathaway, a company whose shares can be purchased for about $435,000/share today. No stock should be worth that much money. It is an insult to capital. Though not every single thing can be compared to every single thing – of value – like things can always be compared easily. For example, is there any world in which Berkshire Hathaway is 5,000x more valuable than Google? Google has a market capitalization of about 2x what Berkshire Hathaway’s is. Even Tesla shares don’t sell for 10,000’s of thousands of dollars per share, and this meme stock was in the Trillion-dollar club a little while ago. Warren’s Buffet mostly sells bull shit. He has been doing it since 1951 for God’s sake. But just like Elon Musk, Buffett’s cult of personality is a corpse. It’s exposition time.
If Cash Is King, Apple Is The Emperor With No Clothes
Apple used to have such an obscene amount of cash on hand it was hard to believe. Now they have so little relative cash on hand, they could not cover more than 2.5% of their market capitalization. That would only ever really matter if there was a run (like people run on banks) on Apple stock. You would know that was happening if their stock stops trading, which would happen if their transfer agent were to become overwhelmed attempting to process real sales of shares, not just trades. A true sale of the stock would force the company (Apple) to pay back investors for the lending of their money. Apple has less than $50,000,000,000 cash on hand. Saying that’s a small amount of money is gross, but it’s true.
It’s true when Warren Buffett’s claim on Apple is over $100,000,000,000 and you realize that he cannot collect on that even if he wanted to. Why? Because the second ol’ bashful attempts to pull his money out of Apple, it will trigger a massive sell-off that would force Buffett to be accountable for paying angry investors back. If there were a run on Apple to the tune of about $25,000,000,000 of value, it would potentially cause a stop-trade on the stock. On the other hand, if the run were to exceed Apple’s cash on hand, it might actually force them to go into some kind of default with their own debt. In the even the run were to exceed $500,000,000,000 it would likely signal global market freezes.
Heavy Lies, The Crown
Remember, Apple is the heaviest stock on the Dow, Nasdaq, and S&P 500. It is the most valued company in America. The most individually held stock. That means if Apple were to appear potentially insolvent for even a day, Wall Street might need to cease trading on all stocks before creditors could be sorted out. It would be Warren Buffett’s fault, too. Warren’s Buffet is full of companies like Coca-Cola which are really steady earners, but which is only technically 34% up over the last 24 years. That’s actually an average rate of return of about 1.4% which is worse than T-Notes right now, let alone most of the time.
Berkshire Hathaway, over the same period, is up over 500% which is an average rate of return of about 20.8% that would outpace the markets. One of Buffett’s most notable holdings, over the course of his esteemed 70+ year career, makes a slave wage compared to his own portfolio. The amount of money any person would need to invest in Berkshire in order to make any money is so astronomical, even the people who could afford it wouldn’t if they were also smart. The economics don’t make any sense.
Warren Buffet Is Not A Good Investor
That’s because Buffett is a conman. He talks a big game, knows the lingo, and has been at this for a very long time so most people award that respect without him proving anything. He wants you to think that he’s Santa Claus, but he’s really Mr. Potter from “It’s A Wonderful Life,” driving good people in small towns to kill themselves (or consider it) instead of running on the biggest banker in town. If anybody actually owns shares of Berkshire Hathaway, they should sell immediately. Because they aren’t worth handing down to your children, even if your parents gave you them. They’re filthy, rotten, and bad.
Warren’s Buffet is full of toxic, poisonous food, snake oil and Ponzi schemes. The guy is basically an economic Jigsaw. He dresses like a ventriloquist dummy, too. Force Buffett to pay out all the people he can that invested in Apple, especially the last 10 years that Tim has been Cooking the books over there.
Get Real, Already
Apple hasn’t innovated anything ever. No, not even when Steve Jobs was there. Sorry to be the messenger, but all Jobs did was set up an American slave labor plant or two in China. Yes, I am blaming Americans for slaves in China. That’s nothing new. But actually holding those American companies accountable, that will be new. That will happen not by sympathizing with the CCP, but freeing the slaves employed by Tim Cook’s Apple. Then retooling the cell phone market until they are made without slaves.
This is much more important than making another iPhone model. Apple will find that nobody needs their new phones. Phones which in no way are innovative at all. If Apple’s firmware attempts to force people to upgrade by breaking phone functionality or degrading quality, people will get dumber phones. The days of this brand convincing us we’re all their slaves, who must be thankful for the opportunity to be forced to buy their overpriced machines – are over. Apple could evaporate tomorrow and nobody would care.
Except maybe Warren Buffett. But I don’t care what happens to him & his money, do you?
