12 months ago
What does that show us?
With proper buyback, a company's stock price can rise even if its market cap remains the same or declines.
— Neil Cybart (@neilcybart) July 14, 2021
My take: That’s what Warren Buffett has been saying all along.
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Yep and that’s what Apple’s been doing before anyone says anything.
You be you, Apple. Actions & deliverables, not words. 🙂
I’m happy I’m still at the table.
“…if the Apple pie is the same but fewer people (stocks) around the table, the slice that each one gets is bigger.”
Ah, but the Apple pie is getting bigger! Eventually, the float will be 50% smaller. If you held your AAPL from before buybacks, you’d own twice the percentage of Apple Inc. If Apple’s earnings and revenue per share also double, your shares are (2×2=) 4X as valuable. And if you bought or owned those shares when the P/E was 10, at a P/E of 30, those shares would be (4×3=) 12X as valuable.
THAT’s the power of buybacks when your cash flow and growth rate are as enormous as Apple’s!
It’s also why owning and holding even a few shares pre-iPhone puts you way, way ahead. And why owning and buying right now is still a very, very smart move.
Some of you know that in July 1997 when Gil Amelio was ousted as CEO of Apple, I purchased $3,500 worth of shares for my daughter as a lark to flip-for-profit. The talking heads on CNBC all were commenting how Apple would go bankrupt. My thoughts were that someone would step-in to buy the company for its “brand” and attempt to turn it around. I never dreamed the person to step-in would be Steve Jobs.
I still manage my daughter’s portfolio. She never has asked for it or asked to tap her wealth. Anyway, I checked yesterday & that $3,500 investment was $5,211,198.34. So Joseph, as you say: “…. It’s also why owning and holding even a few shares pre-iPhone puts you way, way ahead. And why owning and buying right now is still a very, very smart move.”
Don’t be like Warren. I’m quite happy with fewer shares being made available to cover outstanding short positions. Much like the kids table at Thanksgiving. I’m staying long!