224- Buybacks (Part 1)
For show notes and more info visit www.investedpodcast.com\nThis week, Phil and Danielle talk about companies using their extra money to buyback their own stock.\nPhil also talks about what a company being \u201ctoo hard\u201d means. A company is too hard when you can\u2019t understand it, you can\u2019t predict where they\u2019re going to be in 10 years, or even companies you can\u2019t figure out what they\u2019re worth. Keep it simple. If there\u2019s something about a company that you can\u2019t understand, it\u2019s simply, too hard.\nHere 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.\nLearn more about your ad choices. Visit megaphone.fm/adchoices