Comment by nyeah
That's only true if the company pays book value for the shares.
I'm upvoting because you're advancing the discussion for sure.
That's only true if the company pays book value for the shares.
I'm upvoting because you're advancing the discussion for sure.
You're right, I missed that! But, essentially this makes the case for buybacks even worse - paying over book value for shares means that the company is reducing its book value via the buyback. So, it's worth less after the buyback.