Bookmark and Share

20 Quality Buybacks At A Reasonable Price

On one hand, many would argue that the emphasis on share repurchases is merely a sign of the times – the US economy continues to grow (albeit slowly) while corporates enjoy ample balance sheet flexibility in an entirely unprecedented ultralow interest rate environment characterized by the Fed’s ongoing reluctance to raise rates as much of the world’s government debt has moved to negative yields… 

On the other hand, buyback activity near all-time highs could be considered a potential sign that the current Bull Market is approaching its peak. While there is a plausible argument supporting greater share repurchases – return of excess cash in the absence of viable alternative investments – firms have historically exhibited poor timing. 

Management tends to repurchase shares in bull markets when profits are high and balance sheets are flush with cash, while cutting back during recessions (precisely the time they should be buying over the long term).

Here are 20 high quality buyback kings at a reasonable price...


20 Quality Buybacks At A Reasonable Price

No comments:

Post a Comment

Do you have any questions or notes to this article?
Please let me know your thoughts and we will discuss it.