Cook's $879 Billion Bet Transformed Apple Forever
When Tim Cook took over as Apple's CEO in 2011, he made an investment that would change the company's fortune forever. With a total of nearly $879 billion spent on share repurchases, Cook oversaw the largest such program in history. This staggering amount is enough to buy 488 out of the 500 companies listed in the S&P 500.
The money was deployed over a period of 13 years, with annual spendings increasing significantly after the Tax Cuts and Jobs Act (TCJA) became effective in 2018. The company's shares outstanding count decreased by 44.5% during this time.
This massive share buyback program had a profound impact on Apple's earnings per share (EPS). As Warren Buffett noted, share buybacks attract long-term investors and encourage a steady mindset that can reduce share price volatility.