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Pastimes : John Dessauer's Investors World

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To: Ralph C. Cinque who wrote (1621)10/3/1998 8:06:00 PM
From: polarisnh   of 2346
 
<The truth is, that the impact of buying shares in the company is the same for the company as it is for the individual: if the stock goes up afterwards, it was a good move, if it goes down, it was a waste of money.>

Ralph,

There is one big difference. If you or I buy the stock we haven't retired the shares since the amount of outstanding shares hasn't decreased. While if the company does the same while retiring the shares you and I now own a larger percentage of the company. I find it very bullish to see a company repurchase its shares in the open market. Of course, we will have to wait to see if it was a good investment of corporate resources or not.

Good luck,

Steve

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