David Einhorn, whose Greenlight Capital owns approximately 1.3 million shares of Apple (NASDAQ:AAPL), has so far this year brought and dropped a lawsuit against the iPhone maker, all the while insisting that the company should roll out what he calls iPrefs — a cutesy name for a class of perpetually preferred shares that could bring investors $61 a share in additional benefits.
But two important names in the investment world — former General Electric (NYSE:GE) CEO Jack Welch, who now runs the Jack Welch Management Institute, and Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB) head Warren Buffett — have come out in defense of Apple.
Einhorn has accused Apple of having a “depression-era mentality,” because the company has not made any attempts to return some of its $137 billion in cash back to shareholders. He has hurled many complaints like this at the company. “Apple’s attitude toward managing its cash has been the one element that has been non-innovative,” Einhorn said, according to Forbes.
During a three-hour appearance on CNBC’s “Squawk Box” on Monday, Buffett commented that if he were in charge of Apple he would ignore Einhorn. “I would run the business in such a manner as to create the most value over the next five or 10 years,” he stated. “You can’t run a business to try and run the stock up every day.” Buffett noted that he received similar criticism when Berkshire Hathaway’s stock was suffering during the past decade…