Wesley, not to be picayune, but it is not necessarily true that issuing shares destroys SH value over time - it depends. If a company is issuing shares but in turn can reinvest those funds at a return greater than the required return on its shares, then it is creating and not destroying shareholder value. It is true that for a company with a declining share count, ceteris paribus, each share will represent a greater ownership % of the company and more FCF / share.
Wesley, not to be picayune, but it is not necessarily true that issuing shares destroys SH value over time - it depends. If a company is issuing shares but in turn can reinvest those funds at a return greater than the required return on its shares, then it is creating and not destroying shareholder value. It is true that for a company with a declining share count, ceteris paribus, each share will represent a greater ownership % of the company and more FCF / share.
ok thank you for the commment. much apprenticed
Thanks, but why assume such a low growth rate?
I am trying to be conservative
Thanks Wes, enjoyed reading it 👏🏻👏🏻
Thanks man I appreciate it