Warren Buffett’s Top 3 Tips for Apple Inc. (AAPL)

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Build the Cloud: iCloud is rumored to be critical to the company’s long term strategy. Apple Inc. (NASDAQ:AAPL) could make several moves to improve its standing in this department by purchasing of big data centers and applications.

Improve the Supply Chain: By making big advance deals to component suppliers that its competitors use, Apple would corner the hardware market. The company could also develop patented manufacturing techniques that rivals couldn’t copy.

Of course, I’m just playing armchair executive here.

Ignore the share price

“You can’t run a business to push the stock price up on a daily basis.” Warren Buffett

Wall Street is and always looking for a quick bump in the share price regardless of whether it jeopardizes the long-term prospects of the company.

In recent weeks we’ve seen several such proposals. David Einhorn has called on the company to issue $250 billion in ‘iPrefs,’ perpetual bond-like securities that would pay a fixed 4% dividend. Barclayshas proposed the company issue $50-$100 billion in debt to fund a massive share buyback.

But Apple Inc. (NASDAQ:AAPL) didn’t become a great company by tinkering with excel formulas in spreadsheets. The company focused on creating amazing products that customers loved. Apple would be best to just ignore the investment bankers and their financial shenanigans.

The article Warren Buffett’s Top 3 Tips for Apple originally appeared on Fool.com and is written by Robert Baillieul.

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