The John Ternus era begins at Apple

A new Bloomberg article highlights the remarkable gains made by Apple shareholders during Tim Cook's tenure as CEO, with a cumulative gain of 2,275%, or a total return of 2,736%, including dividends. The outlet argues that finding someone to succeed Cook will be extremely challenging, but the author believes John Ternus does not need to emulate Cook's management style.

Cook transformed Apple from a company with a market capitalization of less than $350 billion into a diverse $4.6 trillion business, selling iPhones, Macs, watches, AirPods, and financial services. The author points out that during his time as CEO, Apple's shares increased by 2,736% in total-return terms. However, Ternus should not be concerned about replicating this level of financial success under his leadership.

Two reasons support this view. First, both of Cook's predecessors emphasized that financial success is a byproduct of creating great products, not a primary goal. Jobs famously stated, "If you focus on making really great products, then the profits will follow," and Cook echoed this sentiment, stating he was more concerned with long-term direction than short-term results.

Second, Steve Jobs advised Tim Cook to disregard what he would have done and focus on doing the right thing for the company. Ternus should not try to replicate Cook or Jobs' approaches but instead lead Apple in a way he believes will foster the development of top-notch products and a thriving corporate culture. The author believes Ternus is likely to be a distinct CEO from Cook and suggests following a unique "North Star" for Apple's future rather than attempting to replicate past success formulas.