Icahn on Apple: It’s a No Brainer, Buy on the Dip
Some investors just can’t help themselves. They pick up a couple (thousand or million) shares of a company’s common stock and become backseat drivers, activist investors advocating for their own ideas about how best the company can maximize shareholder value.
Carl Icahn — a self-made billionaire and chair of Icahn Enterprises (NYSE:IEP) — is perhaps the most well-known activist investor currently trolling Wall Street. Icahn has made a name for himself as a successful but sometimes controversial investor. He is an outspoken critic of anybody he thinks is running a company poorly, and is not afraid to shake people out of board positions. For example, he was one of the primary parties involved in the fight for the future of Dell (NASDAQ:DELL), and tweeted that, “All would be swell at Dell if Michael and the board bid farewell.”
He infamously referred to Navistar International (NYSE:NAV) as a “poster child for abysmal business decisions and poor corporate governance,” and in 2013, engaged in a somewhat tense media showdown with hedge fund manager Bill Ackman over Herbalife (NYSE:HLF), in which he said, “I don’t like Ackman, I don’t respect him, everybody knows that.”
More recently, Icahn has made very public his involvement with Apple (NASDAQ:AAPL). Apple is sitting on one of the biggest corporate war chests in history and Icahn believes that management should open the vault and return that capital to shareholders. Apple, for its part, is already implementing the largest single share repurchases authorization in history ($60 billion) and is offering an attractive 2.2 percent dividend yield, but Icahn thinks the tech company can do more.