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compunding shareholder value is likely to cause price appreciation..and the dividends dont hurt either..
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Why do they buy back? There are two possibilities: (1) They are idiots; and (2) They believe they will outperform market.
I believe most companies are not run by idiots. So with high probability it will outperform SPY.
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Should beat S&P 500 in the long run based on retrospective study.
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