News for hackers. Stuff that matters.

A comment on Steve Jobs ignored Warren Buffett's advice for a stock buyback. Parent comment

Re:Steve Jobs ignored Warren Buffett's advice for a stock bu... by bcrescimanno on Monday February 27, 2012 @09:46PM (#3641646)
We aren't talking about re-issuing shares--we're talking about buying them back to be re-issued at a later date. The act of buying them back would shrink the supply and (in theory) drive up the price.
[ Parent | on HN ]
Re:Steve Jobs ignored Warren Buffett's advice for a stock bu... by adamtmca on Thursday March 01, 2012 @01:38PM (#3653380)
You are ignoring the growth in supply that would happen because of the re-issue.
[ Parent | on HN ]
Re:Steve Jobs ignored Warren Buffett's advice for a stock bu... by bcrescimanno on Friday March 02, 2012 @02:09PM (#3657873)
Presumably, the stock would be reissued at a point where forces other than supply & demand would have had an impact on the price as well. Yes, the additional available shares on the market would cause a dip--but that dip would not necessarily negate the other effects that (could have) impacted the stock price since the buy-back.

I'm not ignoring the effect; I'm just not viewing it in vacuum.

[ Parent | on HN ]