Share Cannibals: Companies That Love to 'Eat' Themselves Part 2 | Value Investor Chatter | #69
Value Investor Chatter
English - August 06, 2019 16:39 - 15 minutes - 14.4 MB - ★★★★★ - 32 ratingsInvesting Business News Business News stock market stock penny stocks stocks stockcharts stock quotes online stock trading buy stocks online investing in stocks buy stocks Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
What do we mean when we say "share cannibals?" We're talking about companies that are so acquisitive that they regularly buy back their own stock. Why might this be an interesting strategy for value investors? Because share cannibals are typically companies with strong balance sheets and a lot of cash on hand. They're usually in industries with high barriers to entry, which means they have a lot of pricing power. And they're usually run by shareholder-friendly management teams. In short, share cannibals are usually high-quality businesses that are trading at attractive prices. If you can find one that you think is undervalued, it could be a great investment.
Episode Outline
(00:00) Exploring Share Cannibalism: What to Look For and Where to Find It
(01:48) Exploring Share Cannibals: A Discussion with Hari on Finding Companies with Capital Allocation Strategies
(04:00) Exploring Value Investing: A Community Effort to Help Investors Succeed
(05:38) Exploring Share Buybacks and Shareholder Value Maximization
(10:54) Discussion on Good CEOs as Investors and Capital Allocation Decisions
(12:36) Discussion on Share Cannibal and Opportunity Cost of Decision Making
(14:30) Discussion on Beta Testing and Rating the Value Investor Podcast
Value Investor Chatter
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