Comments on: Dividends and Share Buybacks http://ContrarianEdge.com/2005/11/04/dividends-and-share-buybacks/ Thu, 20 Nov 2008 21:05:00 +0000 http://wordpress.org/?v=2.0.4 by: Jay Walker http://ContrarianEdge.com/2005/11/04/dividends-and-share-buybacks/#comment-35 Thu, 02 Nov 2006 04:19:16 +0000 http://ContrarianEdge.com/2005/11/04/dividends-and-share-buybacks/#comment-35 In general, I agree with your thoughts about share buy-backs and borrowing money to do so. However, if a stock is trading at a very cheap metric - a valuation that might not last - then borrowing to buy-back stock may make both short-term and long-term sense. This is more or less the essence of LBOs. Jay Walker The Confused Capitalist In general, I agree with your thoughts about share buy-backs and borrowing money to do so. However, if a stock is trading at a very cheap metric - a valuation that might not last - then borrowing to buy-back stock may make both short-term and long-term sense.

This is more or less the essence of LBOs.

Jay Walker
The Confused Capitalist

]]> by: Alex Khenkin http://ContrarianEdge.com/2005/11/04/dividends-and-share-buybacks/#comment-8 Wed, 09 Nov 2005 02:56:00 +0000 http://ContrarianEdge.com/2005/11/04/dividends-and-share-buybacks/#comment-8 Vitaly, wouldn't you rather see the management apply a very strict value standard to any share buybacks? Something along the line of Ben Graham's 30% below book? As a small investor I'll take a dividend over share buybacks any day. -Alex <a HREF="http://smallinvestorchronicles.blogspot.com/" rel="nofollow"> Small Investor Chronicles</A> Vitaly, wouldn’t you rather see the management apply a very strict value standard to any share buybacks? Something along the line of Ben Graham’s 30% below book? As a small investor I’ll take a dividend over share buybacks any day.
-Alex
Small Investor Chronicles

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