RIYADH, 16 July 2007 — Kingdom Holding Company (KHC), one of the world’s largest and most diversified private investment groups and Saudi Arabia’s No. 1 company, offered its congratulations to Apple Inc. following its ranking by Business Week as being No. 1 in its ‘World’s 50 Most Innovative Companies’ rankings.” This is the third consecutive year that Apple has topped the rankings.
KHC acquired a shareholding in Apple in 1997 at a time when many investment analysts believed Apple to be an unattractive investment. KHC purchased the shares when they were trading near an all-time low. Since then, Apple revolutionized itself and the technology industry through the launch of its iconic iPod and recently its iPhone.
As of March 30, the lifetime internal rate of return (IRR) of KHC’s investment in Apple has been more than 20 percent. It is seen as an example how KHC’s innovative approach to investment can identify opportunities where others see none.
KHC Chairman Prince Alwaleed referred to Apple’s singular achievement and said: “I would like to offer my congratulations to Steve Jobs and all at Apple on coming top in this prestigious ranking for the third year in a row. Apple has proved to be a very sound investment for KHC. It provides an excellent example of our investment philosophy of not following the crowd, of doing things differently, of seeing value and potential where other see none. We purchased the stock when none believed the Apple story and today it is one of the most revered and iconic brands in the world. We are replicating this sort of success all across the KHC investment portfolio.”