Apple Could Teach Fellow Top Warren Buffett Stock Chevron a Valuable Lesson
Chevron (NYSE: CVX) recently made headlines by unveiling a massive $75 billion share repurchase program. That's enough money to potentially repurchase up to 20% of its outstanding shares, given its current market cap. While that sounds impressive, a closer look at the company's repurchase history leaves much to be desired.
Because of that, Chevron could learn a valuable lesson from Apple (NASDAQ: AAPL), which, like the oil giant, is a top holding of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Apple is by far Berkshire's largest position, at more than $132 billion, which is over 38% of Berkshire's investment portfolio. Chevron ranks third, at over $30 billion, representing about 9% of its investment portfolio. Apple's success in buying back its shares likely increases Berkshire's confidence to hold such a large stake in the tech giant.
Apple generates mountains of cash each year. In 2022, it produced an astounding $122.2 billion of operating cash flow, $18 billion more than the prior year.
Source Fool.com
