Carl Icahn did an interview with Fox Business News anchor Neil Cavuto yesterday afternoon. The hedge fund manager talked about the Federal Reserve’s decision on quantitative easing, but, perhaps more interestingly, he went into his investment rationale at Herbalife Ltd. (NYSE:HLF) and Apple Inc. (NASDAQ:AAPL).

Carl Icahn

The major factor for Apple Inc. (NASDAQ:AAPL) stock is the stock buyback that the company is currently carrying out and the possibility of an expansion in that program. At Herbalife Ltd. (NYSE:HLF) the rationale is simple. Icahn believes that the company is simply undervalued. Icahn says that Bill Ackman is “completely totally wrong.”

Icahn on Herbalife

Icahn thinks that Herbalife Ltd. (NYSE:HLF) is still undervalued. The company’s stock has risen by more than 120% so far in 2013, and Icahn still thinks there’s room to rise. In his view, Bill Ackman’s characterization of the company as a pyramid scheme is simply untrue. Icahn spends a lot of time looking at corporate governance and he sees nothing wrong at Herbalife Ltd. (NYSE:HLF).

“Herbalife keeps making more money and it does it in a legal way,” in Icahn’s view. He compares the company’s prices to those of a high end jewellery store. “If you go to these jewelry stores on 5th Avenue as opposed to go to 47th Street you can say they’re too high, that does not mean they’re illegal, that means they do a service.

Herbalife Ltd. (NYSE:HLF) has been around for years, and it’s been selling the same product in the same way all that time. Icahn thinks that Bill Ackman is wrong about the company, and he’s not moving. Icahn reckons the company’s stock is “still undervalued.”

Icahn’s dinner with Tim Cook

Apple Inc. (NASDAQ:AAPL) is another company that Carl Icahn has taken a prominent interest in. He’s hoping that the firm increases its share buyback, but he’s not sure if it intends to. Apple has around $150 billion in cash. He reckons the company should give it back to investors instead of keeping it on hand.

Icahn is doing his best to convince management to buy back more stock. In the FBN interview he said, “I’ve had a good couple of conversations with Tim Cook, he hasn’t said yes or no but he does say that he is a fan of buying stock back and he’s already doing it.”

Carl Icahn says he’s going to have dinner with Tim Cook next week. If he can convince the CEO to get in favor of a bigger buyback, his company Icahn Enterprises will see another windfall ahead.