Share Buybacks - A Sustainable Source of Returns?

40.5% of the returns came from share buybacks, 31.4% from earnings, and 21% from multiple expansion. If you take a look at Apple as an example, Apple's bought back over half a trillion dollars worth of stock. The only time that shareholders get a distribution from a company is when the company pays a dividend.

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IN THIS EPISODE, YOU’LL LEARN:

02:16 - Why the valuation gap between value and growth is wider than ever.
02:28 - Why Lance doesn’t think the FANG stocks are dead.
06:11 - How the rise in flows into passive indexing impacts the FANG stocks performance.
20:00 - Lance’s current assessment of the market and his outlook into 2023.
27:39 - How Lance is positioning his investments heading into 2023.
33:42 - His 7 rules to navigate investing in a bear market.
42:47 - The decomposition of returns in the S&P 500.
50:54 - The increasing importance of share buybacks in driving returns.
54:14 - The pros and cons of share buybacks vs dividends for shareholders.
And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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Lance’s Youtube Channel: Real Investment Show with Lance Roberts.
Lance’s Podcast: Real Investment Show with Lance Roberts.
Related Episode: Deep Dive Into Apple & Google w/ Logan Kane. - MI239.

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