'Aaa'-pple! The best bond in the world?
The Blind Squirrel's Monday Morning Notes, August 7th, 2023.
Apple lost US$150bn of market capitalization on Friday. The company’s bond-like characteristics are often cited when justifying the valuation of a stock that props up US equity markets (almost) single handedly. Let’s stop that.
It is human nature to reach for sexy narratives in support of share price action. The 🐿️ hates to spoil the fun, but the reality is sadly a bit more prosaic.
There is a temptation to fetishize about Steve Jobs ‘the visionary’ behind Apple but is it in fact Tim Cook ‘the financial engineer’ that has made Apple the
$3$2.8trn monolith that it is today?
We take a hard look at the props supporting the prop.
If you want to buy an Apple bond, buy an Apple bond (there are plenty of them!!). And by the way, don’t worry Mrs. Yellen, Apple’s credit rating…