Hedge fund manager Einhorn takes Apple campaign to shareholders. Hedge fund manager David Einhorn, who is battling Apple Inc in court as part of a wider effort to get the iPhone-maker to share more of its cash pile, will now make a direct appeal to the company’s shareholders. He will host a conference call on Thursday to argue the merits of distributing perpetual preferred stock — his favored way of rewarding shareholders.
You know what’s really silly about Einhorn? It’s the fact that he just wants a fast cash-in. He’s greedy and has no vision. Apple’s board proposal to kill preferred stock is actually clever, it’s against this kind of jackasses. Einhorn doesn’t believe in Apple, that’s for sure. But because Apple still is - for him, anyway - a cashcow, he wants to profit as much as he can.
You don’t call Apple’s cash hoard a hoard for nothing. Steve Jobs wasn’t stupid, neither is Cook. Both Jobs and Cook knew right from the beginning that these kind of people would try to rip off the company, not considering any risks. That cash hoard is there for a reason: it’s future investment money in innovation, in the extreme case that jackasses like Einhorn would try to sabotage the company.
The problem with Einhorn is not that he’s just a greedy jackass, it’s that he’d rather cash-in fast instead of cash-in lots of money on the long run. This is why the board members ignored him and this is why he’s going to try to convince the shareholders.
These kind of jackasses is the death of innovation.