Rames:
AAPL continues to be my largest holding.
Apple’s cash stockpile is growing again, up about $10.4 billion in the last quarter to a whopping $76.2 billion at the end of June, said Peter Oppenheimer, CFO of the iPhone and iPad maker on its earnings call Tuesday. Oppenheimer said he was “thrilled to report the highest quarterly revenue and earnings in Apple’s history.”
Let's make the extreme assumption this increase continues and they buy nothing big. This time next year, AAPL would have 10.4*4=41.6 Billion more, or 117.6 billion in cash. Let's reduce that now to 100billion in cash, to be more conservative. At this hypothetical reduced cash rate, of say, 5 Billion a quarter, in 6 years, i.e. 2017, AAPL will have over 200 Billion in cash. At 5X cash, AAPL becomes the first trillion dollar company-- before 2020.
I just don't see China buying AAPL. Maybe eventually AAPL buys China?
-Andrew
