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This week, Phil and Danielle talk about companies using their extra money to buyback their own stock.

Phil also talks about what a company being “too hard” means. A company is too hard when you can’t understand it, you can’t predict where they’re going to be in 10 years, or even companies you can’t figure out what they’re worth. Keep it simple. If there’s something about a company that you can’t understand, it’s simply, too hard.

Here are a few options that companies have to do with their extra cash. They can issue dividends, which many companies do. They can buy back their own stock and they can just keep it and you use it for acquiring other companies or putting extra money into growing the company.

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