A stock earning 20% per year by buying back shares at the same price can deliver 20% annualized returns even with zero reinvestment of earnings, demonstrating that capital returns (buybacks and dividends) are an independent engine of returns not synonymous with growth, and investors should not conflate the two.
causalpending
Speaker
John HuberEvidence Quote
“you can have one company that um has 20 % return on Capital they reinvest everything and if your multiple stays constant constant you're getting 20% returns over time”
Source
Value Investing Fundamentals & Current Market Conditions w/ John Huber (TIP634)— The Investor’s PodcastCreated: 8/12/2026, 6:07:54 PM
My Notes
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