Tim Cook accomplished something ‘almost impossible’ as Apple CEO

CNBC’s Jim Cramer on Tuesday reflected on the legacy of Tim Cook, arguing that the longtime leader of Apple achieved something many in corporate America consider “almost impossible.”

“You have heard a lot about Tim Cook today and for good reason,” the “Mad Money” host said. “He built the greatest consumer-based enterprise in history.”

Cook, who succeeded Steve Jobs and will be replaced by hardware engineer John Ternus in September, faced early skepticism about whether he could maintain — let alone expand — Apple’s dominance. But under his leadership, the company’s stock increased roughly 1,900%, as of Monday’s close, while also deepening its connection with customers in ways that Cramer said are rare in modern business.

Cramer pointed to Cook’s farewell letter where the CEO described starting his mornings by reading emails from customers. Many shared personal stories about how Apple products impacted their lives. In one example, Cook referenced messages about the Apple Watch helping save lives.

“In every one of those emails, I feel the beating heart of our shared humanity,” Cook wrote, underscoring what Cramer sees as a defining trait of his leadership — a deep, genuine commitment to the end user.

According to Cramer, that philosophy helps explain why Apple succeeded in a space where many companies struggle to maintain dominance. He drew a distinction between consumer-focused businesses and enterprise-driven firms, noting that Wall Street historically assigned higher valuations to enterprise companies because their customers tend to be more predictable. “Enterprise customers tend to be consistent, sticky, while consumers are fickle,” he said.

When Cook took over in 2011, Apple’s stock traded at a price-to-earnings multiple in the low-to-mid teens. Today, it commands a multiple around 30 times forward earnings, according to FactSet, which is more commonly associated with higher-margin software companies than less-profitable hardware makers. To Cramer, Apple’s expanded valuation reflects Cook’s ability to transform the company from a cyclical device business into a trusted brand with loyal users and more durable, recurring revenue streams such as iCloud storage and Apple Music subscriptions.

Disclosure: Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, owns shares of Apple.