Apple Could Have Purchased Any of 487 S&P 500 Companies -- but CEO Tim Cook Chose to Invest $853 Billion Into This Game-Changing Opportunity

Although Nvidia is Wall Street's largest publically traded company, nary subordinate of the "Magnificent Seven" paved the mode for the banal marketplace rather similar Apple (NASDAQ: AAPL). Since existent CEO Tim Cook took implicit for Steve Jobs successful August 2011, shares of Apple person soared by much than 2,600%, including dividends.

Throughout overmuch of Cook's astir 15-year tenure, which is coming to a adjacent erstwhile helium steps down from the CEO relation connected Sept. 1 and transitions to enforcement president of Apple's board, the company's carnal devices, specified arsenic iPhone, person done the dense lifting. But a important information of Apple's outsize returns nether Cook tin beryllium traced to what's been, successful hindsight, a game-changing $853 cardinal investment.

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Apple CEO Tim Cook stake large connected himself and his institution

I cognize what you're astir apt thinking, and no, Apple hasn't plowed $853 cardinal into artificial quality (AI) research. Despite respective Magnificent Seven members outlaying northbound of $100 cardinal annually to grow their AI information centers, Apple's brag recovered a much intriguing mode to enactment his company's superior to work.

With $853 billion, Apple could person acquired immoderate of 487 S&P 500 (SNPINDEX: ^GSPC) companies, not including itself. But alternatively of making a large splash with an acquisition, Cook and the different members of Apple's committee chose to put successful what they considered a prized asset: their ain company's stock.

Beginning successful 2013, Apple began repurchasing a batch of its ain banal -- and it hasn't stopped:

• 2013: $22.95 cardinal successful buybacks

• 2014: $45 cardinal

• 2015: $35.253 cardinal

• 2016: $29.722 cardinal

• 2017: $32.9 cardinal

• 2018: $72.738 cardinal

• 2019: $66.897 cardinal

• 2020: $72.358 cardinal

• 2021: $85.971 cardinal

• 2022: $89.402 cardinal

• 2023: $77.55 cardinal

• 2024: $94.949 cardinal

• 2025: $90.711 cardinal

• 2026: $36.989 cardinal (through the fiscal 2nd quarter)

Collectively, Cook has overseen astir $853.4 cardinal successful stock buybacks, which would beryllium capable to get each but 12 S&P 500 companies. In the process, Apple has retired much than 44% of its outstanding shares.

One crushed Apple has been assertive with stock buybacks is that it helps the company's optics. For companies with dependable oregon increasing nett income, stock repurchases tin trim their outstanding stock number and summation net per share. In theory, this tin marque Apple much fundamentally charismatic to value-focused investors.