Thomas Nearly (President, NYSE) :
NYSE: Hello friends, my name is Thomas Nearly, and I am the current President of the NYSE (New York Stock Exchange). You may be amazed to know that I have a CFA certification myself.

Luca Mastery (CFO, Apple) :
CFO: Luca Mastery here. After Nokia and Xerox, I've been welcomed as the CFO at Apple, Inc. and I report to Tim and the board on all matters of finance and accounts.

War-in Buffett (Investment Guru) :
Buffett: War-in Buffett, is my name. I founded Berkshire Hathaway, an international holding company in 1970. Today, each of our equity shares is worth $262,000 or INR 1.75 crore. We invest to create value, not to make money.

Luca Mastery (CFO, Apple) :
CFO: Hello War-in, it's really great to have you here and get your opinion on Apple and its valuation. I'm really excited to hear your comments and get a perspective on what experts feel about us.

Thomas Nearly (President, NYSE) :
NYSE: You're absolutely right, Luca. NYSE has 2,800 listed securities but, both Apple and Berkshire are very close to the investor's hearts. I personally follow the Apple stock closely and have a lot to contribute.

Gross Seymore (Analyst, Deutsche Bank) :
Analyst: Oh definitely, Apple is such a big brand and its balance sheet is really different from what we analysts usually see. There are many observations that I have made. And, since the biggest value investor is with us, it is best if we talk about Apple's equity valuations.

Luca Mastery (CFO, Apple) :
CFO: You see, I'm relatively new to the family, but, what drew me to Apple in the first place is it's legacy, growth story and the passion of the founders who still fuel innovation. The reason for our financial success isn’t our operating efficiency, but the belief that our internal and external stakeholders have in us.

Gross Seymore (Analyst, Deutsche Bank) :
Analyst: But Luca, how do you plan to sustain this growth? You're already the biggest company in the world with revenues at $50 billion. A small puppy can grow quickly to a large dog, but, it is practically impossible to enlarge an elephant further.

Thomas Nearly (President, NYSE) :
NYSE: Luca, Gross is right here. There have been serious concerns in the market about your growth, especially after Steve's tragedy. The reports simply suggest that your annual growth rate shall only be 1.5%

War-in Buffett (Investment Guru) :
Buffett: However, they still exceeded expectations and posted a 3% growth, didn't they?

Gross Seymore (Analyst, Deutsche Bank) :
Analyst: You're right, Mr. Buffett. But that seems to be a one-time thing. I'm looking at the fundamentals here. 75% of their revenues come from a single product - the iPhone. This dependency on one product line is quite dangerous.

Thomas Nearly (President, NYSE) :
NYSE: Gross, leave strategy, look at the reality, Apple's stock - just like most other tech companies - is overvalued.

War-in Buffett (Investment Guru) :
Buffett: Listen to me carefully, kid. The world knows that War-in Buffett didn't invest in technology stocks earlier. But, we still made an exception and put in $1 billion in Apple. That's because we target consistent growth.

Luca Mastery (CFO, Apple) :
CFO: Thanks for the support, Mr. Buffett. Apple's share is currently trading at $140. And, it derives its value from our free cash reserves.

Gross Seymore (Analyst, Deutsche Bank) :
Analyst: Of course, yes. Your $250 billion cash reserves are more than sufficient to buy 400 out of S&P 500 companies. But we haven't seen you buy Coca-Cola, Tesla, Amazon, etc. Instead of giving out more dividends to shareholders, you're simply retaining most of your profits.

Thomas Nearly (President, NYSE) :
NYSE: You didn't even give out dividends a few years back. And, even after the buy-backs over the years, you've only been able to spend $183 billion. The bottom line is: you have more cash than you need. You've become a cash cow and that is leading to inefficiencies.

Luca Mastery (CFO, Apple) :
CFO: Thomas, I do understand that most analysts are valuing our share at $125-$130.

War-in Buffett (Investment Guru) :
Buffett: Look, some of our valuation models also gave us bad data. We factored in that, Samsung is rapidly eating away your product margins to 30% (which may also become 25% shortly), and the fact that you've become mature enough to not grow at the same rate.

Gross Seymore (Analyst, Deutsche Bank) :
Analyst: And tax! Apple is paying a lot of tax, almost 26% of total revenues. How would you be able to grow with the market, the competitors and the regulator against you?

Thomas Nearly (President, NYSE) :
NYSE: Calm down please. Luca, I have been a user of Apple products since 1981, and partly because I’m fascinated by it as an investor. But, does that change the fact that you've saturated?

War-in Buffett (Investment Guru) :
Buffett: Simple answer: no. A few years ago, we had valued it at $129 while the market dropped to $94. But, our projections haven't changed. Apple is still undervalued and shall continue to grow.

Gross Seymore (Analyst, Deutsche Bank) :
Analyst: Mr. Buffett, let me assume your decision is right. My only question is: how? Look at the capital structure. The long-term borrowings are almost $100 billion while their market cap is many times more.

Luca Mastery (CFO, Apple) :
CFO: Gross, if you're suggesting that we borrow more and take leverage, that isn't what our philosophy is. In the near future, there aren't going to be any major changes in the capital structure.

Thomas Nearly (President, NYSE) :
NYSE: So, shall we assume that Apple is assuming that their stock is undervalued, too? Because every quarter, the analyst reports suggest otherwise.

Luca Mastery (CFO, Apple) :
CFO: Why are the future projects being ignored? Our electric car, renewable energy, and artificial intelligence are very promising.

War-in Buffett (Investment Guru) :
Buffett: People, don't forget that they also have the financial cushion to fall back on, if they fail. Why is it so hard to see? It is a safe investment.

Gross Seymore (Analyst, Deutsche Bank) :
Analyst: It is not for the simple reason: we can't build a reputation on what we are going to do. As professionals, we are looking at numbers right now, and we don't see them justifying your statements.

Thomas Nearly (President, NYSE) :
NYSE: Either way gentlemen, we can only let the market and time prove us correct or incorrect.