Billionaire investor Carl Icahn (Trades, Portfolio) spoke with FOX Business Network’s (FBN) Charlie Gasparino about his positions in Apple (NASDAQ:AAPL) and Herbalife. He discussed his $500 million purchase of Apple stock today, saying, “we think it's really very undervalued, and the board is doing a major disservice by not using this greatest horde of cash in history.” Icahn went on to say Apple is “doing me a favor, because they're letting me buy the stock here at this value instead of buying it themselves.” When asked whether he plans to buy more Apple stock, Icahn said, “yes, we presently intend - at these values - to continue. I think it's very cheap.” Icahn also commented on Herbalife (NYSE:HLF) saying, he hasn’t “sold any shares” and that he thinks “it is very undervalued.”
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Excerpts from the interview are below.
On purchasing $500 million in Apple stock today:
“We just put out what you're just referring to, we just bought another - we just paid, what, another $500 million worth today… Bringing us to 3.5 billion… we think it's really very undervalued, and the board is doing a major disservice by not using this greatest horde of cash in history. I mean, there's nothing anywhere ever close to it. And just sitting with the fallow -- I mean, it's almost criminal that you just sit there fallow with it when you could be taking advantage of your own company's stock. And if you own 50 percent of this company, if your uncle left it to you, and all that money around, you wouldn't be sitting with it. No way. So, I mean, and so, obviously, we feel strongly about it, but they're doing me a favor, because they're letting me buy the stock here at this value instead of buying it themselves. So I guess I shouldn't be - I shouldn't be bitching about it.”
On whether he will buy more Apple stock:
“We intend, I said yesterday that, at the right values, which we think it is, well, today, obviously, we paid $400-$500 billion worth. And, yes, we presently intend, at these values to continue. I think it's very cheap. I think they got - I mean, I don't know where, what I'm missing, but, I mean, this is how you make money if you're a good investor. You buy with both hands when you see something like this.”
“You know I am sort of on the board, we have delegates on the board. I really have to be very careful with what I say, but I will say this: if I haven’t sold any shares of stock, I really believe in it. I think it is very undervalued. I think it is a great model. I do not subscribe to any of what is being said, but I can’t really get into details at this point.”
On Twitter (NYSE:TWTR):
“I never owned a share, but that doesn't say I don't like it or I do like it. I don't own shares of a lot of companies. I like Twitter for what I do on it, I think it's a great medium.”
**CREDIT FOX BUSINESS NETWORK**