3 Things Media Pundits Must Stop Saying About Apple Inc. (AAPL)

But a large debt issue would impair Apple’s long term viability. By straddling the company with a big fixed obligation, Apple Inc. (NASDAQ:AAPL) would loose flexibility needed to respond to the next industry shift.

Selling bonds would also only have a minimal impact on the stock. Some analysts estimate a $50 billion debt issue would only provide a 5%-10% share price pop. Hardly enough to justify jeopardizing the company’s future.

Foolish bottom line

I agree with Warren Buffett’s advice to Apple management:

Return excess cash to shareholders through a simple buyback program.

Focus on creating shareholder value through enhancing operations.

Don’t try to manage the share price day-to-day.

Given Tim Cook’s attitude to Wall Street’s crazy proposals, I think he understands this already.

The article 3 Things Media Pundits Must Stop Saying About Apple originally appeared on Fool.com and is written by Robert Baillieul.

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