The World’s ‘Greatest’ Investor Recalls When Steve Jobs Asked Him What to Do with Apple’s Cash Reserves, and Why He Didn’t Take His Advice

A conversation from ten years ago between Apple founder Steve Jobs and legendary investor Warren Buffett came to the surface after Apple’s recent impressive third-quarter earnings report. In a 2012 CNBC interview, Buffett recounted a call from Jobs asking for guidance on how to manage Apple’s growing cash reserves.
“It was an interesting conversation because I haven’t talked to him in a long time,” he said. Berkshire Hathaway the chairman said. Buffett added: “He said, ‘We have all this cash. What should we do with it?’ So we discussed the options.” The Oracle of Omaha outlined the typical options for corporate cash: stock buybacks, dividends, acquisitions or holding on to it.
“I analyzed the logic of everything. He told me they wouldn’t have a chance to make big acquisitions that would require a lot of money,” Buffett said during the interview. When he suggested a stock buyback if Apple thought its stock was undervalued, Jobs replied, “I think my stock is very undervalued.”
What Steve Jobs Said About Not Following Warren Buffett’s Advice
But Jobs ultimately reportedly decided against Buffett’s advice. “He didn’t do anything, and he obviously didn’t want to do anything. He just liked having the cash,” Buffett said with a laugh. “That was really interesting to me because I later learned that he said I had agreed with him not to do anything with the cash.”
It looks like Apple still likes its cash reserves. According to the company’s earnings report, Apple’s cash on hand for the quarter ending March 31, 2024, was $67.150 billion, up 20.19% year over year.