Lessons for Apple in Mays, Madoff

by The Investment U Research Team

In many ways Steve Jobs return to Apple (Nasdaq: AAPL) was overshadowed by the demise of Billy Mays and the Bernie Madoff’s sentencing.

However, there are lessons for Apple in both of these men.

Billy Mays tragic loss should give iPhone and iPod creators pause to consider what would happen if the company did lose Steve Jobs. While Tim Cook has performed strongly by many analysts accounts, he does not bring true star leadership power that Jobs does.

Apple should start addressing this now. Even Berkshire Hathaway’s (NYSE: BRK.A) Warren Buffett has Charlie Munger, and I’m sure a host of recorded and written statements of contingency plans in the meantime.

The other lesson for Apple is from Bernie Madoff. The New York Times was a little blasé when they mentioned Jobs return, “With Mr. Jobs’ return widely expected, Wall Street’s reaction to the news on Monday was muted.”

The reaction may have been muted, and there may be no change in stock price, but what wasn’t mentioned was the innumerable lawsuits that are being prepared right now on behalf of dissonant shareholders.

You see while Apple is famous for its secrecy, this case of protection may have gone too far. A CEO’s life, and especially one as pivotal and influential as Job’s, is a material fact for a company.

Omitting the true state of Jobs’ health is akin to forgetting to mention that your brand new product has production flaws. The lesson from Bernie for Apple should be clear: do not lie, cheat or steal, or there will be consequences.

The real question for Apple is whether the consequences will affect the stock price…

Symbols mentioned in this article: AAPL and BRK.A.

Comments

By submitting your comment you agree to adhere to our Comment Policy and Privacy Policy.

Check out our selection of daily investment research: