Take a break from earnings.
Here I’ll highlight some companies that did massive repurchases over time.
Friendly reminder to account for SBC and % of mkt cap when calling any share-repo “massive” and best to look long term.
Let’s take a look at some real cannibals
🧵👇
Moody’s $MCO
A classic capital light compounder and one of the best businesses around. Shares outstanding are down 41% in 20 years.
Verisign $VRSN
Boring company nobody has heard of that operates domain name registry for the internet, like .com
shares outstanding down 58%
$ALLY My favorite Online Bank
Shares outstanding are down 28% in FIVE years
…and just getting started
AerCap $AER is an interesting one…
that big pop was issuing shares for a big acquisition (ILFC), issued >book and bought back shares subsequently below book (40% of them)
Pt. II: They’re now doing the exact same thing to buy GECAS and fully expect them to buyback shares after
$JPM Jamie has been disciplined on buybacks over the years, slow and steady does it.
-25% over last 10 years
$CHTR FinTwit favorite is a master in the buyback game, and quite vocal about it.
Issued shares to buy TWC, now buying back shares non-stop: -32% last 5 years and no signs of slowing down
$AAPL gotta include this one as they got serious about capital allocation
You can thank Tim Cook of course, but also Carl Icahn and Buffett
Shares outstanding down 38%
$AZO AutoZone deserves a place in the throne…
shares are down 81% over the last 20 years. Yes you read that right.
Also, yes this is a log-scale.
But they actually get second place.
The winner is saved for last: Teledyne of the 70s (still around today and a great company!)
Henry Singleton was the buyback GOAT. Between 1972-84 he tendered shares aggressively when the price fell to single digit PE ratios.
He ended up buying back OVER 90% of them in 12 years.
Which stocks would you add to the list?
What’s your favorite buyback story going forward? Bonus points if it’s not FAANMG.
I think $BRK will be interesting and certainly $ALLY
(As promised, cc @DadInvest)
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