The Buyback Bottleneck

Share repurchases have become so routine that when companies don’t buy back "enough" stock, the investment community often reacts with disappointment. While there are valid (and sometimes concerning) fundamental reasons for holding off, in this post, I want to highlight some non-fundamental factors that might explain a slower-than-expected buyback pace.

Investment Process: Your Edge.

The word "edge" might initially suggest something exclusive or inaccessible. On the contrary, I think an investment manager's edge could be very specific to him or her. Knowing these edges strengthens my investment process.

Investment Process: Evaluating Management through Press Releases

A company's management has two primary responsibilities: running strong operations and allocating capital wisely. However, businesses inevitably experience periods of ups and downs. It is during periods of weak performance that management’s true character is revealed. Since assessing management is a critical part of my investment process, press releases can sometimes serve as a valuable tool in this evaluation.

Investment Process: A Key Principle

It is part of human nature to have an unconscious conflict of interest that may lead one to act against their best interests. Recognizing this is crucial for taking the necessary steps to protect financial well-being.

Bargain Hunting: Hidden Risks in Balance Sheets

During an industry downturn, it’s common for a company to experience weak operating performance, leading to a lower stock price. While these scenarios attract bargain hunters hoping to find diamonds in the rough, based on my experience of looking at such companies, such situations should be closely scrutinized for the company's weakened financial position and potential share dilution.