> You can’t “sell off” after the buyback as a buyback is mechanically neutral to share price. Cash holdings of the company go down such that NAV per share is th

> You can’t “sell off” after the buyback as a buyback is mechanically neutral to share price. Cash holdings of the company go down such that NAV per share is the same after the buyback. It may go up due to sentiment or technical reasons, but not for fundamental reasons. You're right, but you're also wrong, you can't sell off after a buyback because the buyback is the action. You can, however, sell off after a buyback is announced, and in that case the value more or less does go up for fundamental reasons, not in the company, but in the market for the company's shares, since you know there's an increased demand. The idea I was getting at was that you'd target owning the same percent of the company before and after the buyback, which you can calculate at least as of the announcement. Obviously since share prices fluxuate over time, you can't know it in general though. > If the company shrinks, as it did with BBBY, then the buybacks were dilutive. This is equally true with dividends though. If a company bankrupts itself by paying too many dividends, that's also equally bad for shareholders in the long term. Like fundamentally, there is zero difference between the following two situations: 1. A company announces and implements a 1% dividend 2. A company announces a 1% buyback, and every shareholder sells 1% of their holdings to the company. In both cases, the exact same transaction has taken place. Everyone owns the same percentage of the company before and after, and everyone has the same increase or decrease in cash holdings.