Warren Buffett’s Simple Advice About Apple Inc. (AAPL)

It might seem that by the time that Cook started repurchasing Apple stock, it was a terrible idea, as the stock soared. But per an April filing with the SEC, the first 4 million shares of Apple stock that were bought back were bought at an average price of $478, not too far from recent levels (and well below Apple stock’s high above $700). Management seems pleased with the idea of buybacks, too, as plans to buy back Apple stock have been boosted from a spending cap of $10 billion to $60 billion. If you, too, think that Apple stock is cheap (as many, but not all, do), this bodes very well for shareholders.

Next time you hear of a stock buyback plan, don’t let yourself get too excited before thinking of Warren Buffett, Steve Jobs, Tim Cook, and the importance of a stock’s valuation.

The article Warren Buffett’s Simple Advice About Apple Stock originally appeared on Fool.com and is written by Selena Maranjian.

Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

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