As avid investors, we often emphasize the significance of companies with a track record of consistently repurchasing their stocks. This is because as the number of outstanding shares decreases, investors automatically benefit from built-in returns without any further action required on their part, and they come to own increasingly larger stakes in the company.
Apple’s recent $110 billion stock buyback plan breaks all records in corporate history, surpassing previous giants in this category. In fact, Apple has a long-standing reputation for implementing massive repurchase programs. If we assume an average annual buyback amount of $100 billion under the “Club name” moving forward, we decided to evaluate the worth of such a program for shareholders.
While we proceed to analyze the potential benefits of these buybacks, it’s essential to establish a solid foundation. Let’s lay the groundwork first.
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