Rule #1 Finance Blog

With Investor Phil Town

InvestED: Ep. 226- Buybacks (Part 3)

“The stock market ultimately prices the value of a business in the long run.” – Phil Town

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.

If you want to learn more about buybacks and other important investing topics, join us on the podcast today!

Show Notes:
InvestED: Ep. 224- Buybacks (Part 1)
InvestED: Ep. 225- Buybacks (Part 2)

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.