RE:RE:RE:RE:BTE LEVEL 2 - WALL MOVED TO $5.41 If they had 1000 shares and they bought back 950 shares do you not think that the value of those last 50 shares would be much greater than if they had not bought back shares?? what if it was 999shares bought back.
It also has a pretty decent effect on dividend payouts
Kelvin wrote: Ok thanks for that 1234 bmth. I stand corrected. I checked. You're right. Operating income is revenues minus expenses. So the money comes from the cash account in the statement of cash flows. So why is Buffet mostly against share buy backs? Probably because the net effect is to lower total assets. You have to convert assets into cash to buy shares that you'll just end up retiring and of no value to anybody.