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Apple iPrefs: David Einhorn Will Win Because Steve Jobs Is Dead

Stocks in this article: AAPL

During an email conversation we had Thursday night, Einhorn said this for the record: "Proper capital management is not in conflict with an innovative product culture, which we believe will continue to persist under Tim Cook."

Can Einhorn prove this? No way.

For as solid as his presentation was -- and as effective as I think it will ultimately be -- he loses me when he cites examples of how some companies properly manage their cash and others do not. He uses these case studies to argue that to truly "Think Different" about capital allocation, Apple should do what every other company in the same or a similar situation should do. In other words, he wants Apple to follow pages from a standard MBA textbook.

Just as Einhorn cannot prove that, "Proper capital management is not in conflict with an innovative product culture," I cannot show beyond a doubt that Apple's history of not doing what the MBA textbook says correlates with its otherworldly success. But that's where the risk lies ... in not seeing the qualitative and admittedly abstract connection between Apple's tendency to act in seemingly irrational ways and its disruptive and game-changing achievements.

-- Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
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