Share Buyback

A share buyback is an action taken by companies that involves companies going to the market and buying back their own shares. At the very core, share buybacks reduce the number of outstanding shares. A share buyback may mean that the company is investing in itself, rather than investing in future growth. One of the disadvantages of share buybacks is that they can help companies polish their per-share corporate earnings: the more they buy, the higher the earnings per share look, even though there may be no improvement in overall earnings.


So far this year, share buybacks announced by public companies have reached a cumulative total of $460 billion—the highest since 2007, which was the year the Dow Jones Industrial Average peaked above 14,000 before starting its crash all the way…

Carlo and I went to high school together about 30 years ago. We remained friends after we left school even though we went our separate ways. Our common thread is that we are both entrepreneurs running our own businesses. After…

The second-quarter earnings reporting season is underway, and mainstream stock advisors have high hopes. But what we are seeing is “more of the same” of what we saw in last quarter’s S&P 500 company corporate earnings: revenues are lower; corporate…