PRO Talks: Value investor Whitney George says Apple stock is worth $200 'at a minimum'

Published Thu, May 10 20182:48 PM EDTUpdated Thu, May 10 20183:07 PM EDT

Longtime value investor Whitney George believes Apple's market capitalization is worth at least $1 trillion. In an exclusive interview for CNBC PRO with Mike Santoli , Whitney said that the iPhone maker's stock remains "remarkably inexpensive." "Apple to me is still worth $200 at a minimum, and that's assuming flat operating income for the next couple of years," Whitney explained, adding that its strong balance sheet and cash hoard make the technology company more attractive than many realize. "I started buying Apple for myself the day after Steve Jobs died. That was kind of the scary moment that created a valuation opportunity and have held it ever since," he added. Apple , which was last trading just under $190 per share, is widely expected to become the first company worth $1 trillion. The stock is roughly $13 (7 percent) away from notching the historic milestone and currently boasts a market cap of $933.88 billion. Shares are up 24 percent over the past 12 months, well ahead of the S & P 500's gain. Shares of the Cupertino, California, company have resumed their upward climb following a strong earnings report and the news that Warren Buffett's Berkshire Hathaway had bought an additional 75 million shares in the first quarter. Buffett also chastised investors for their preoccupation with iPhone sales , saying "The idea that you're going to spend loads of time trying to guess how many iPhone Xs ... are going to be sold in a three-month period totally misses the point." Despite his largely bullish outlook, George said that at its current price, Apple no longer represents a "screaming buy" and that he recently trimmed his holdings as the stock notched all-time highs. "If it were to fall back to $120 or $130 it would [present a strong opportunity]. At $200 and up, maybe it's not such a great idea anymore," he said. "I run a portfolio typically between 40 and 50 stocks, I do manage the risk by capping positions at 5 percent. Recently, Apple has kind of reached that and been pruned a little bit in the portfolio." George is the senior managing director of Sprott Incorporated and chairman of Sprott US Holdings as well as portfolio manager of Sprott Focus Trust, an equity fund that holds a focused portfolio of value stocks of all sizes. Prior to his role at Sprott, he spent 23 years in senior roles at Royce & Associates.

Longtime value investor Whitney George believes Apple's market capitalization is worth at least $1 trillion.

In an exclusive interview for CNBC PRO with Mike Santoli, Whitney said that the iPhone maker's stock remains "remarkably inexpensive."

"Apple to me is still worth $200 at a minimum, and that's assuming flat operating income for the next couple of years," Whitney explained, adding that its strong balance sheet and cash hoard make the technology company more attractive than many realize.

"I started buying Apple for myself the day after Steve Jobs died. That was kind of the scary moment that created a valuation opportunity and have held it ever since," he added.