Sam Oliver
A Russian billionaire recently bought about $100 million in Apple stock, and has publicly declared his faith in the future of the company.
Billionaire Alisher Usmanov thinks Apple is a good buy at its current price. Photo via The Guardian.
Alisher Usmanov, the richest man in Russia, views the recent decline in Apple's share price as a strong investment opportunity, he said in an interview with Bloomberg. Shares of Apple are down nearly 40 percent from their high last September, just before the launch of the iPhone 5.
Apple is a "very promising investment" over the next three years, Usmanov said, though he cautioned that "nothing is eternal." He specifically cited the company's recent decision to spend $100 billion through 2015 on its capital return program.
That money will go toward a new, higher quarterly dividend of $3.05 per common share, as well as a share repurchase program that will amount to $60 billion. The plan is the largest share repurchase authorization in history.
Usmanov is known for making more than a 10-fold return on his investment in Facebook, after initially building his fortune through the tech sector in Alibaba.com and Mail.ru. He's the 35th richest man in the world, with a net worth of $19.8 billion.
With his company's market capitalization off $100 billion from its high last September, Apple Chief Executive Tim Cook said last week that the declining stock price has been "frustrating."
"But Apple remains very strong and we will continue to do what we do best," he said. "We can't control items such as exchange rates and world economies, and even certain cost pressures, but the most important objective for Apple will always be creating innovative products — and that is directly within our control."
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31 Comments
In Soviet Russia shares buy you.
Apples shares can go up and down independent of the cash they bring in. The stock price is purely manipulated by the boys on Wall Street. They make revenue markers and hopes Apple can cross THIER FINISHING LINE. And when Apple doesn't meet their BS, they drop their stock prince. LOL! In January Apple posted the greatest quarter in Apple history; yet the stock price still went down!!! There needs to be an investigation because the speculators are stealing money from investors and blaming it on Apple's management.
Mr. Usmanov appears to be a traditional "investor" instead of a stock market gambler. These are the type of stories that show how undervalued AAPL really is and hopefully will prop up the stock. The market needs to get rid of all those manipulators and day gamblers who have no interest in any long-term investments. Investment was the reason the market was created but it's turned into a mess of short and long gamblers and is a cesspool of corruption. Apple is an international company so I have no problem with Russian investors. The buy Apple devices just like the rest of the world.
With a 3 year timeframe, seems like a safe bet that AAPL will hit at least $600 again at some point. With the chance of $800. So 50%-100% gain. Apple can't screw up that bad to tank below $400 long term.
[quote name="techguy911" url="/t/157280/russias-richest-man-bullish-on-apple-buys-100m-in-shares#post_2319076"]With a 3 year timeframe, seems like a safe bet that AAPL will hit at least $600 again at some point. With the chance of $800. So 50%-100% gain. Apple can't screw up that bad to tank below $400 long term. [/quote] It has little to do with Apple screwing up. Apple is the same company as when the stock was over $700. Further when Wallstreet is involved nothing is a safe bet. Yet, Apple will be getting a good price on its shares if the stock dips.