“Today I received a call from one bullish Apple investor, David Rolfe, the chief investment officer with Wedgewood Partners,” Tiernan Ray reports for Barron’s. “Wedgewood manages $1.1 billion, of which roughly 10%, or $100 million, is in Apple shares. Rolfe also heads up Wedgewood’s large-cap growth fund, the RiverPark/Wedgewood Fund (RWGIX).”
“I asked Rolfe why the stock was hitting highs, and he opined the ‘sweepstakes’ on the sell-side that usually precedes Apple’s quarterly report is happening a little earlier, with analysts jousting to raise their targets sufficiently high,” Ray reports. “When I asked Rolfe about speculation that Apple might be considering a dividend or share repurchase, the question prompted a long and rather enthusiastic disquisition on his part about why that’s a bad idea.W
“Rolfe doesn’t think Apple will do either, for a long time, and he certainly hopes they don’t,” Ray reports. “‘We think Apple is doing something quite different with their cash horde,’ Rolfe tells me. ‘We view it through the lens of endowment model, call it the iEndowment.’ Apple had $76.2 billion in cash at the end of fiscal Q3.”
Ray reports, “Put simply, the enormous amounts of cash Apple will earn in coming years will give the company unprecedented staying power.”
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[Thanks to MacDailyNews Reader “David E.” for the heads up.]
Ray reports, “”
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