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CJ Gustafson's avatar

Love your work, thanks for making me smarter.

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Arny Trezzi's avatar

Humbled to be mentioned in this outstanding article. Thank you Janelle!

Buy-backing shares to offset dilution is not necessarily bad if done at a price well below the intrinsic value. However the adverse incentive to keep purchasing also at irrational prices is a real risk. I would value case by case.

"large cap SaaS companies are spending a sizeable portion (30%) of their cash flow on share repurchases but shares outstanding are still rising (+7%)" = insane.

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