In the graveyard of all potential reputations in American business, it had to be number one next to Apple's Steve Jobs. Nevertheless, Tim Cook, who announced this week that he would step down as Apple's CEO, took the position and made the post his own. Relying on unique skills and abilities that were completely different from those of Mr. Jobs, he built unprecedented value within the company, whose market capitalization now exceeds $4 trillion, just a few years after first exceeding $1 trillion.
The word masterclass has been thrown around a lot lately (and we're just as guilty of that as anyone else, sorry), but that's exactly what Cook did during his tenure. It's a one-of-a-kind class taught by a master on how to create sustainable competitive advantage and margins. There's a lot to learn and a lot to say, but for me, there are three things that stand out to me from my time running Apple.
turn customers into fans. Under Mr. Cook, Apple expanded on the sense born in the Apple II era that owning one of its products was more valuable than owning a consumer electronics device. It was about something cool. It was a sense of belonging. That vibe permeates everything they do, from the way they build their laptops to the way they handle customer service. This is the north star that has allowed us to scale up both horizontally (international growth) and vertically (new product growth). Apple's billions of loyal fans (fans, not customers) trust that everything they bring to market, from watches to TV shows, works seamlessly within their ecosystem and enriches their lives.
Please be patient. Under Mr. Cook, Apple built perhaps the most stable balance sheet in U.S. business history. Think about this. In Q1 2026, which wasn't a remarkable quarter for the company, Apple generated $51 billion in free cash flow and had $66.9 billion in cash reserves. That way, you can nurture your ideas for years, even if you don't understand them right away. It's not all iPhones, but that doesn't mean it won't be profitable in the long run. Best example: ApplePay. It was introduced in 2014, but struggled for years to gain widespread adoption. As of 2026, it will be used by approximately 785 million people, accepted in 90% of U.S. retail stores, and the company has an estimated annual revenue of $3-4 billion.
Don't believe the CEO's hype. Despite being the highest-profile CEO, Tim Cook is the least-known CEO since then. I literally can't think of anyone who can match that. Mr. Cook, who followed in the footsteps of Steve Jobs and led the Musk era, has never tried to be something he is not, and when his job as the king of Silicon Valley would have made most people want to hang on to the crown, he leaned into his cool detachment and overwhelming sense of competence. Although he is clearly a shrewd businessman, he remains cautious in his media appearances, makes few big public statements, and handles politics like a savvy K Street pro. Under Mr. Cook, the product spoke, not the CEO. That is ego discipline. Of course, there are many other lessons to be learned from his time running Apple, but these are the three that have really stuck with me. Because these are things the rest of us can focus on improving as well. Turn your customers into fans. Give yourself patience. Don't buy the hype. Very doable. It's very convenient. Thank you, Tim.
