General discussion, page-4260

@danbradster

I understand your point and agree but I have always believed in reducing shares as a way of adding value to a company. A company with a small float will attract better EPS (earnings per share) A small market capitalisation will force prices up adding value to the company's share value. When Warren Buffett buys into companies he looks for EPS, BV and ROE, as well as share buy backs. Why share buy backs?

When a company repurchases its own shares, it decreases the total number of shares outstanding, which can lead to an increase in earnings per share. This action can also indicate to investors that the company believes in its own stability and considers its stock to be a worthwhile investment for its excess cash.

Robert Hagstrom Jr.'s "The Warren Buffett Way" is noteworthy, but "The Warren Buffett Stock Portfolio" by Mary Buffett and David Clark stands out as the superior resource. This book specifically addresses company metrics and the use of financial calculators to discern a company's value. Essentially, guides investors on how to uncover hidden value in companies and predict future earnings, barring any unforeseen events.


@Caio!

Dividend yield is the annualized cash dividend divided by the current market price of one share. (Y)
If a stock with a market value of $50 paid $1.75 in dividends over the course of a year, its annual yield would be 3.5% because $1.75 is 3.5% of $50.