Glossary

A share buyback, also known as a stock repurchase, is a corporate action where a company buys back its own shares from the open market, reducing the number of outstanding shares.

This can be done for various reasons, such as to return excess cash to shareholders, increase earnings per share, or improve financial ratios. Share buybacks can also signal a company's belief that its stock is undervalued. 📊💡

For example, in 2018, Apple announced a $100 billion share buyback program, which aimed to return value to its shareholders.

Fun fact: In 2021, Berkshire Hathaway, led by Warren Buffett, spent $6.6 billion on share buybacks in the second quarter, marking it as one of the largest buyback programs in the company's history. This move demonstrated the Oracle of Omaha's confidence in the company's intrinsic value. 💰