looking at Apple today (04/20/2020) and noted that it is currently $281.16/share (NASDAQ, 2020). That is a pretty healthy share price even if it is dropping just a bit over the day. Given that the price is almost $300.00/share, do you feel comfortable purchasing enough shares so that you would not be 'caught up' in a share buyback? Kilgore (2019) indicated that 92.6 million shares were purchased back to Apple from shareholders at the end of Q4 2019 which is quite a bit. If the company does buy back your stock, is it worth continuing to invest in it?
Any company which is having strong foundation and fundamentals in place always give a n option to the shareholders for the buy back as it is a healthy activity for.the company to reduce it's share quantity.
And if the company is sound and having being giving consistent return annually for the past many years. Then whatever be the price of the share. The stock should be purchased. Because if right now the company is growing at a pace of 10% per annum, which for apple is very less, as the company is.in very good.shape for the foreseeable future. The share price next year will be approx $330, then also it will be seen as high priced.
Therefore do not go for the price.
Go for the value that it is giving you in the future and as the money with interest is compoundesd. You will get your money worth.
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