Post by
Nextlegup on Aug 29, 2023 8:30pm
Bottom line...When you buy back shares
You're reducing the number of pieces of pie to divide the profits from ultimately....
Additionally, what has to be factored in is tha a company is aiming to grow....
If you buy back 10% of the shares at X, and earnings grow....Those increasing profits are divided by fewer shareholders thus greater...
Comment by
cgyinv on Aug 29, 2023 10:08pm
I have to remind you that meanwhile the company may issue new stocks to executives as part of their compsensation, buy back just benfit those people because new shares won't led to a increase of total number an price to go down
Comment by
masfortuna on Aug 30, 2023 7:57am
You are assuming that they would give as compensation ALL the shares that have been bought back. That is a very one-sided view. Buybacks are fine.