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Why share buybacks are a good thing Add to ...

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Canadian companies have been enthusiastic buyers of their own shares at a time when Warren Buffett – the world’s greatest investor – continues to rail against buybacks. Should investors be worried?

Buybacks, or share repurchases, are a way for companies to return money to shareholders without committing to dividend hikes. The practice reduces the number of outstanding shares, boosting profit on a per-share basis by at least 4 per cent, according to Standard & Poor’s recently quarterly figures.

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