Apple has been in the crosshairs in recent weeks, as it relates to the cash on its balance sheet. Hedge fund manager David Einhorn suggested that Apple issue preferred stock, dubbing them "iPrefs," as a way for the market to realize the value of its cash. Einhorn's thesis is the iPref would pay a 4% dividend, and would trade at a face value of $50. Berkshire Hathaway ( BRK.A) CEO Warren Buffett suggested that Apple "ignore" Einhorn, and instead run the business to create the most value over the next five to 10 years. That may involve buying back stock occasionally. "You can't run a business to push the stock price up on a daily basis. Berkshire has gone down 50% four times in its history. When that happens, if you've got money you buy it. You just keep working on building the value," Buffett said during an interview on CNBC.
I have no proof that Apple is speeding up its buyback program, but it is something to think about in light of the near daily special dividend rumor. What do you think? Post your thoughts in the comment section below. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull