Apple's Stock Price Reaches All-Time High Above $180 After Warren Buffett Praises iPhone Maker

That strategy makes sense for someone who has held the stock short term, but for a long term holder it doesn't result in any tax savings. And long term you lose out on the appreciation of the stock you sold.

Either way the discussion is academic because Apple is highly unlikely to eliminate dividends. You'll see iOS on Samsung devices before that happens.

I'm not advocating Apple ELIMINATING the dividend. I just don't want them to substantially raise it or do a special dividend (something Cook already shot down).

Long term capital gains are taxed at a lower rate than short term (ordinary income) so the strategy makes sense for long term investors. If you need some extra cash, sell a few shares and pay the long term capital gains rate. This is a strategy Buffett advocates for folks that need the cash. Buybacks create long term value. Dividends are just cash payments.
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Bubble. Warren is getting Senile. :apple:

Said no one ever. Buffett at 87 is incredibly sharp. I watched his entire 3 hour special on CNBC and he hasn't lost anything.

And Apple being a bubble? LOL!! I guess you forgot the entire market was crushed earlier this month and created massive market swings.

NFLX and AMZN are certainly closer to bubble territory at 200 and 350 times, respectively than AAPL at 15 times earnings.
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What goes up must come down.

I really want to sell and lock in what I've gotten on this, but I've only held it since August, so taxes will be about double on it what they'll be if I hold it another 5 months... the question I keep wondering is, will it manage to remain this high (or higher) for another 5 months? Or will it drop by enough that I should just swallow the taxes now?

I'm really overthinking it, given AAPL is only 3% of my portfolio, and I only have a single share of it. It's only the second share I ever bought, and will mark the first share I ever sold.

Just some friendly, free advice. Stop thinking about the price. You own a business. Will Apple be worth more or less in 5 years? Think about it this way. Markets can do anything. The same company traded at $150 just 3 weeks ago because markets overall became irrational. You can't make decisions based on what the stock price is doing.

You sell the Apple and then what? You buy something else and have similar worries.

My mentality is I own Apple, the business, not the stock. If something materially changes the business model, I will reevaluate my position. I was confidently buying shares when the market knocked AAPL from all time highs a few weeks ago because I know the facts and overall narrative have no changed, despite the change in share price.

You only sell when you believe the facts have change and the business is no longer headed for success. You don't sell because the quoted price reached a certain number.

The greatest investor of all time now holds almost 166M shares ($28B at current value) of the best company in the world. This is Berkshire's LARGEST marketable securities holding. Gives you a sense how much Buffett likes the business and Tim Cook (besides him saying it all the time).

By the way, this is old information as we knew Buffett added over 30M shares when the 13F was released almost 2 weeks ago. He owned over 130M shares for the last year.

The Board should look at raising dividends from May onward.

The Board should look at raising dividends from May onward.

As a shareholder, I don't want dividends. I want them to buyback as much stock as they can and slowly raise the dividend, maybe 10% at a time. The stock is tremendously undervalued.

Berkshire shareholders recently voted on a dividend proposal. 47:1 it was voted "NO" to a dividend. Dividends are not always the best way to deploy capital. I certainly don't want to pay the tax.

Buybacks reduce share count, increase EPS, reduce dividend obligations, and avoid taxes. However, buybacks make sense at once price and don't make sense at another. I think Apple's buyback would make sense even at all time highs. Buffett agrees and he's said so.

As a shareholder, I don't want dividends. I want them to buyback as much stock as they can and slowly raise the dividend, maybe 10% at a time. The stock is tremendously undervalued.

Berkshire shareholders recently voted on a dividend proposal. 47:1 it was voted "NO" to a dividend. Dividends are not always the best way to deploy capital. I certainly don't want to pay the tax.

Buybacks reduce share count, increase EPS, reduce dividend obligations, and avoid taxes.

As a shareholder since 1996 I want both. At this point if I was to sell any of my stock over 99% of the proceeds would be taxable as capital gain. Dividends allow actually using the stock appreciation without selling stock.

Isn’t it wild that the value of Apple has swung by $100 billion within a month?

Every year like clockwork in December or January some negative Asian supply chain rumor on the iPhone comes out and Wall Street becomes a bunch of nervous nellies and dumps the stock. And then a month or two later get back into it. I don’t know of another company that has so much constant concern around it. The coverage on Apple is it’s always one bad quarter away from doom. I swear there’s nothing Apple could do that would make Wall Street not worried. If they had a blow out quarter in terms of iPhone sales then Wall Street would be fretting about it being a tough comp or that they’ll never be able to have another super cycle again. The stock is up now but as we get closer to the next earnings release I’m sure there will be more unsourced rumors about weak iPhone sales and it will get dumped again.

Fair enough. My rationale was rising stock price = unrealized benefit only due at sale, Dividend = cash in hand, now, today.

Let me give you the same advice Buffett did when asked about dividends. Just sell a small piece of your AAPL holdings every year and take a long term capital gain (lower tax rate, still get some cash every year). The beauty of using the money for buybacks is you can decide to pay your capital gains tax if you want a little extra cash and you're not forced into being taxed on a dividend.

The buyback also reduces share count, increases EPS, and ultimately makes your shares more valuable, assuming the stock is undervalued (which Apple and I believe is the case). Apple's buyback has been very successful. Their average price is something insane like $120/share.

Isn’t it wild that the value of Apple has swung by $100 billion within a month?

In front to hit $1T market cap! Tim Cook has done really well for Apple.

Isn't it nice how people can manipulate the price of a stock using only words.