A stock buyback or share repurchase is the acquisition of a company’s own outstanding shares, using company funds, reducing the number available on the market – the overall share count.
Buffett’s safe and value driven strategy for compounding and reinvesting earnings has secured a fortune in the billions, making him an investment messiah amongst many.
Benjamin Graham was a renowned investor known for his in-depth analysis of value investing, which is still used as the foundation for modern investing today, though the craft has changed and evolved in dramatic fashion by now.
While early-stage investors into the likes of Google, Netflix, and Microsoft have made fortunes, companies raising their dividend pay-out annually with strong, long-term growth have gone almost unnoticed in the recent decades since tech stocks began booming from the eighties onwards.
As an investor, you need to know your portfolio is strong, built for the long-term, and designed for prosperity, through market peaks and troughs. A steady flow of dividends is the key indicator of a company’s earnings, financial health, and long-term ability to deliver results to its shareholders.
The legendary investor and Berkshire Hathaway CEO, Warren Buffett, is known worldwide for his investment success. Buffett based his wealth compounding techniques on Benjamin Graham’s philosophy of value investing, which determines a company’s growth potential on intrinsic value, rather than its speculative price.