New York, NY, United States (4E) – Billionaire investor Carl Icahn has purchased another $500 million of shares of the Apple, bringing his total investment to the company at $3.6bn, according to his regulatory filing on Thursday. Icahn also urged Apple’s shareholders through a letter that discussed why buyback should be significantly increased.
The activist investor revealed on his tweet on Thursday that he purchased another $500mn worth of Apple shares, raising his total investment to $3.6bn. He also added that his group sees Apple’s “no brainer” value even if its board does not.
Mr. Icahn said in the letter that the best performing investments came as a result of opportunities they describe as “no brainers”, citing recent examples like his investments in Herbalife, Chesapeake, Netflix, Forest Labs and Hain Celestial. Another great example of a no brainer investment in the present market is Apple, he adds.
The iPhone maker has $130bn of net cash and $40bn of expected annual earnings. With that financial flexibility and record-low borrowing cost, Icahn said a $50bn share repurchase plan over the fiscal year 2014 appears to be more than reasonable.