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Stock buybacks also count as cash flows. But stock that will never pay a dividend (or do a buyback) in a million years? That is as pure a bubble as you will e
by QuesnayJr 7y ago
Stock buybacks also count as cash flows. But stock that will never pay a dividend (or do a buyback) in a million years? That is as pure a bubble as you will ever find.
- wallacoloo 7y agoIsn’t it reasonable to consider a company’s assets in addition to cash flows? If a company has $1B of assets (and no loans, for simplicity), might indirect ownership/control over those assets via stock be worth something?
- QuesnayJr 7y agoThat's actually a really good point. But you have to be able to eventually convert the assets into cash (maybe through selling the assets to another company, rather than through dividends).