Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top
Historical buybacks: Fast follow or trade with care?
U.S. stock buybacks briefly reached a record level this year. $Apple (AAPL.US)$ has repurchased greater than $86 billion in shares over the p Show More
U.S. stock buybacks briefly reached a record level this year. $Apple (AAPL.US)$ has repurchased greater than $86 billion in shares over the past 4 quarters, whereas $Meta Platforms (META.US)$ and $Microsoft (MSFT.US)$ were $48 billion and $28 billion respectively.

"Cash Management Tool"
Buffett has noted that in most cases, the shares companies buy back are undervalued in the market. Buybacks can send positive signals and stabilize investor sentiment. Besides, to a certain extent, it can improve the earnings per share. Since 2009, the S&P 500 Buyback Index has outperformed the S&P 500 Index over the long term. However, the previous largest buyback was in 2007, before the stock market crashed.
Figure source: Standard & Poor's, Yardeni Research.

What do you think?
Do you think buybacks are a reassurance or a risk point for a crash? Do you hold stocks that have been repurchased? And how did you react? Leave your thoughts below, and 6 users will win 600 points for each!

Views
696K
Posts
57
Join topic
Latest
Hot