Rule #1 Finance Blog

With Investor Phil Town

InvestED: Ep. 224- Buybacks (Part 1)

This week, Phil and Danielle talk about companies using their extra money to buy back their own stock.

Phil also talks about what a company being “too hard” means. A company is too hard when you can’t understand it, you can’t predict where they’re going to be in 10 years, or even companies you can’t figure out what they’re worth. Keep it simple. If there’s something about a company that you can’t understand, it’s simply, too hard.

Here are a few options that companies have to do with their extra cash. They can issue dividends, which many companies do. They can buy back their own stock and they can just keep it and you use it for acquiring other companies or putting extra money into growing the company.

If you want to learn more about buybacks, join us on the podcast today!

Subscribe & Review in iTunes

Are you subscribed to InvestED? If you’re not, we want to encourage you to do that today because we don’t want you to miss an episode. Our episodes are weekly and are sometimes multiple parts and if you’re not subscribed there’s a good chance you’ll miss out on current events happening in the market. That would be a major bummer. Click here to subscribe in iTunes!

Now if you’re feeling extra loving, it would be awesome if you left us a review on iTunes, too. Those reviews help other people find this podcast and Danielle and Phil also love reading them so that we can improve your listening experience. Just click here to review, select “View in iTunes”, then “Ratings and Reviews”, and “Write a Review” and let me know what your favorite part of the podcast is. Now go play!

identicon
On the InvestED podcast, Phil and his daughter Danielle shine a light on the successful investing strategies that gurus like Warren Buffett have used for 80 years. Listen in for a great stock market education on basics, learn how to invest on your own, and follow along with real-time examples and investing tips from week to week.