Gustavo Ballvé on November 6th, 2013
Food for thought, Home, Investment Themes, Portfolio Management, Risk management, Signal or Noise

Very interesting post today by The Brooklyn Investor showing, with real-life examples, what great CEOs or investors (or someone who’s both in the case of Warren Buffett) can do to generate value for shareholders and clients even when the market is flattish or going down for long periods of time. He’s humble enough to say that this is far from the norm, especially because share buybacks are far from a sure thing, but that’s precisely the point of, well, pointing out these examples: it is possible and it’s our job as stock pickers to focus substantial portions of our time to finding these great companies run by great people. And of course the entry price is vital (that goes without saying) but in these examples he shows that the patient investor could have made “mistakes” and still have come out pretty well – albeit after too long a time for most people. It doesn’t detract from, and in fact enhances, the main point of seeking “special” companies and their outstanding leaders.

Other posts tagged with “buybacks” available here.

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