Carl Ichan dropped $1.5 Billion yesterday buying Apple stock. And of course Appleista’s are in an uproar. “What does Carl Ichan know about technology?” they are asking. Maybe nothing. But clearly Apple without Steve Jobs is not the same company and probably should not have the same growth expectations and stock multiple. But Ichan DOES know how to read a balance sheet.
Apple Q3 2013
Cash & Equivalents 146,620,000,000
Total Assets 199,856,000,000
ST Investments 31,358,000,000
$146,620,000,000. That’s 73% of Apple’s balance sheet. Apple, the technology company, producers amazing technology. There is no argument there. But maybe Apple, the stock, without Steve Jobs is no longer the technology stock it once was. Maybe it’s more like a cash management company.
Anyway, Ichan’s recent track record in these kind of stock plays is worth noting. And he did make about $75 Million on his Apple investment yesterday.
And as to his knowledge of technology, maybe he slept in a Holiday Inn Express last night.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury