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InvestED: The Rule #1 Investing Podcast

226- Buybacks (Part 3)

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Investing, Business

4.61.6K Ratings

🗓️ 13 August 2019

⏱️ 43 minutes

🧾️ Download transcript

Summary

For show notes and more information, visit investedpodcast.com. Phil and Danielle continue their four-part series on buybacks in this episode of InvestED. They use common situations to illustrate exactly what a buyback is and what occurs when a company buys back its shares of stock. Companies distribute shares such as a pizzeria selling pieces of a pie, issuing slices of its ownership when it becomes public. When a company retires two pieces of its pizza pie by buying them back, what then happens to the remaining slices? The discussion proceeds as Phil and Danielle explain why companies decide to buy back shares with their extra money. They explain why companies bother with buying back their shares, and additionally cover the 4 basics of what a company can do with its extra money. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

New from DurX, 7 different vibrations you'll want to put on repeat.

0:15.0

Now available at boots and at duerX.co. UK. Hey everybody this is

0:26.2

this is Phil Town and this is Danielle Town.

0:28.6

Welcome to the invested podcast where we are investing via the strategies of Warren Buffett, Charlie Munger, and

0:38.0

other phenomenally great investors who, you know, the world sometimes calls us all value investors but we're not really at all

0:45.5

we are just looking for deals that's basically what we do we are we are garage sale investors

0:51.5

we are I at the local...

0:54.0

I heard... I heard somebody, I was listening to another podcast,

0:57.0

and somebody called it quality investing.

1:01.0

He said, I'm a quality investor. He looks for quality.

1:05.1

Well, I kind of wish them a lot of luck on that. That's actually quite easy to do, quality investing.

1:10.6

That's what most mutual firm managers try to do. There's this, that means something specific to you?

1:15.0

Yeah, it's what most mutual fund managers try to do.

1:19.0

It's kind of what Guy Spear was pointing us towards stay fully invested by quality companies, but you have to stay fully

1:27.0

invested, which means that you are often buying companies at not such a great bargain.

1:33.7

And Monash Perbai was just talking about that recently

1:38.3

as the difference between he and Guy

1:40.5

in that he's looking for quality investments,

1:45.0

as opposed to quality companies.

1:47.6

So by saying quality investments,

1:49.6

what Monish means is he wants a wonderful business that's also a wonderful investment and

1:54.8

that of course is what it's Warren Buffett 101.

...

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