.......... A major study of the stock market found that in four years, "value buyback stocks" (buyback stocks with high book-to-market ratios), consistently generated returns 388% higher than other stocks. The difference in your bottom line can be enormous.
In the last 10 years, during a raging bull market, if you had invested $10,000 in a typical S&P 500 portfolio, you investment would have grown to $67,917 - an excellent return. But that same $10,000 invested exclusively in value buyback stocks would have grown to $130,254 - nearly $70,000 more in profit for you.
When companies buy back their own stock, it's an enormous vote of confidence by those who know it best - senior executives. No one else knows the firm's financial situation, market share, business plans, ongoing Research and Development programs, competitive advantages, new product strategies, better than those with hands-on, day-to-day experience. But, these executives aren't talking. They keep their plans, tactics, and research behind closed doors. The only indicator of their well-founded optimism is a stock buyback. It's a powerful indicator that no serious investor should ignore. .....