It’s been a lucrative week for Tim Cook.
Questions were raised when it was reported that the CEO of Apple (NASDAQ: AAPL), Tim Cook, had sold 511,000 shares of APPL stock worth $87.8 million before taxes. According to records submitted to government securities regulators, Cook received $41.5 million in post-tax proceeds from the stock sale.
Given that Apple’s share price has decreased more than 8 percent since August, could it be that even the company’s executives think it’s reached its highest point?
Cook still holds 3.3 million shares of Apple, worth more than $550 million at its current stock rate. So, investors can probably disregard the idea that this implies the CEO has concerns that the business is failing or that the stock can’t reach a higher value.
The share sale comes after Cook took a rare pay cut of about 40 percent to $49 million for 2023. As part of the changes to his compensation, his stock awards tied to Apple’s performance will increase to 75 percent this year from 50 percent previously.
Cook previously offloaded much more. For example, he liquidated Apple stocks to the value of $752 million in August 2021, and after taxes, he made approximately $355 million.
Executives selling stock at Apple isn’t necessarily a sign of internal difficulty, as is commonly thought, but is somewhat unlikely to be the case. Investors shouldn’t read too much into Tim Cook’s recent stock sale.
Warren Buffett’s not worried, so why do I worry?
Many consider Warren Buffett to have the greatest investment record of all time, given his lengthy track record of success. An investor can increase their portfolio profits by examining the stocks held by Berkshire Hathaway. If a company passes Buffett’s test, it may be worth considering.
Currently, Apple makes up a notable 47.5 percent of the conglomerate’s portfolio. The Oracle of Omaha thinks highly of the dominant tech business.
Warren Buffett hailed the Apple chief this spring as “one of the classiest CEOs” and “one of the greatest managers” in history.
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