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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Brickeye   😊 😞
Number: of 15058 
Subject: Re: So my question is…
Date: 05/06/2024 9:17 PM
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"That's what the math says. The second order thinking would address motivations. For example, in the example above management might be more inclined to pay out a dividend before the buyback than after the buyback because they have so much spare cash. It would be relatively rational for them to think about a lower payout ratio after the big buyback."

I see, thank you for your detailed reply! As a long time owner in Philip Morris I was always under the assumption they were saving money on the dividend with buybacks but now, thanks to your explanation, I realise I'm as wrong as I am about my assumptions :-)

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