No. of Recommendations: 5
Buybacks done at fair value do not increase the value of the remaining shares at all.
A whole lot of people (including many a CEO) can not get their heads around that simple fact.
Depending on the particular way they misunderstand things, they'll react in various illogical ways.
Buybacks done at fair value do not increase the value of the remaining shares at all in the present.
Yet, a smaller share count going forward increases the likelihood that earnings per share (EPS) will,
all things being equal, be greater in the future. And, EPS is the metric that, for the majority of companies,
investors take as indicative of value, and so, it tends to influence share price.