Quote:
Originally Posted by Boomer
Thinking out loud:
While I do not pretend to have any level of sophistication when it comes to the stock market -- or anything else for that matter -- I do have a limited knowledge and I know what I like. (Although -- I do remember seeing the housing crisis coming, long before it hit. Instinct? Gut? Remembering my hard lesson from the tech bubble in the 90s? Whatever?)
Mere bumpkin though I may be, I have to say that stock buybacks lately are bothering me.
I think a surge of buybacks can create an artificiality in the market. I would much rather have solid, increasing dividends, underpinned by actual earnings and reasonable payout ratios. (Yes. I am boring.)
But what do I know. (sigh)
Meanwhile, I will continue to tend the moat, maintain the buffer zone, while I wait for the inevitable.
Any thoughts out there on buybacks, etc.?
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A large part of knowledge is knowing and admitting that you don't know something.
The sale of investments with all of it's rules and assumtions makes us ripe for the picking.
Share buy backs. What does that mean? Like most things the answer is it depends. When a company buys it's own shares they are not necessarily destroyed-likely they are not. The company can elect to hold those shares and then put them back on the market for things like management incentive programs etc.
You can easily determine if the outstanding share count goes down-very few of of prawns do. DEFINITION OF A PRAWN-we people that the sharks feed on.