View: SP500-Decompostion-Returns-Buybacks-102021-1024x733_0.png (1024×733)

SP500-Decompostion-Returns-Buybacks-102021-1024x733_0.png (1024×733)

The chart below via Pavilion Global Markets shows the impact of buybacks on the market over the last decade. The decomposition of returns for the S&P 500 breaks down as follows: 

21% from multiple expansion, 

31.4% from earnings, 

7.1% from dividends, and 

40.5% from share buybacks.

Comments

LZLZ
Many CEOs took on debt to finance buybacks. It's like if you moved into someone else's house, took out a home equity line and left with the cash. That's how these companies are run. 12/21/21
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