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💸 Apple faces a new 1% tax on its substantial share buyback program, amounting to an estimated $1 billion annual cost based on its reported $100 billion repurchase activity.
🔍 Warren Buffett highlights this tax as a factor that not only costs Berkshire’s investee companies like Apple directly but also potentially reduces Berkshire’s own opportunities for share repurchases if such taxes become more widespread or increase.
📉 The introduction of this tax, and the potential for it to increase, could influence future capital allocation decisions for companies heavily reliant on share buybacks for returning value to shareholders.
@Invierteygana:
“For example, Apple spends about $100 billion a year repurchasing shares, and now there is a 1% charge associated with that. So, that means they pay $1 billion a year when they buy Apple shares. It doesn’t seem like much, but there are those who want to increase that rate drastically.”
Watch the exact part of the video where @Invierteygana talks about Apple Inc. here:
Watch the video on YouTube
Read more articles by the world’s top 100 analysts on Apple Inc. (AAPL) at the following link. AAPL stock.
