Monthly Archive for: ‘December, 2016’

The Equity Round Trip

Many public companies generate more cash from their operations than reasonably needed for future business investments, and an increasing number have been returning excess cash to shareholders via share buybacks. Hamilton Point’s quality-focused investment philosophy leads us to own certain of these publicly-traded companies that are, if you look closely, slowly “going private” by regularly buying back a portion of their shares. The incidence of share repurchases by public companies has been significant in size of late and worth discussing since buybacks can either be a great idea or altogether unwise.

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