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Ep 358. Elasticity of Demand, Snap Judgments, Capital Allocation, and Judging Growth Capex

Focused Compounding

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Are They Taking Out a Lot of Debt to Buy Back Stock?

Stella jones is a very predictable company. They're buying back l out of their stock. It looks pretty safe as well. We'd have to learn more about the business model, but from like, a quant perspective, ts what you would want to see if they are taking out a bunch of debt to buy back stock. That's not in normal times for the market. However, on a leverage basis, it's very cheap, as the price to sales is zero point eight. A lot of this is capital alcation, and the benefits tat you're getting from that,. In terms of buying the stock, the equity, as opposed to buying the entire company. And i

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