Why You Shouldn't Pay Six Times Book Value

If you knew that something could grow at 20 % per year for 20 years, i it could justify paying four times more. If as long as you know it's a good business, bybacks are much more desirable than dividend payments. Some people may argue there's no compounding of the dividend, but in the very long run, it's a big benefit for a shareholder in a cheap stock to have them continue to buy back shares.