One recommendation that Warren Buffett gave Steve Jobs is that if he thought Apple Inc. (NASDAQ:AAPL)’s stock price was “cheap”, there was no better use of Apple Inc. (NASDAQ:AAPL)’s cash than buying back its own stock. Mr. Buffett not only gives this advice, he follows it, stating that he believes Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) is worth at least 1.2 times its book value, he stands ready to buy Berkshire stock below that level. Research in financial economics suggests another reason why Apple Inc. (NASDAQ:AAPL) should be paying attention to Mr. Buffett’s advice today. Stock prices serve as signals, not only for…
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