jon edwards

The Ins and Outs of Share Buybacks: Sometimes Hot, Sometimes Not

Great point and something that not everyone focuses on when evaluating buybacks, although Buffett has been railing on this for years.

Your math is off however - buying a stock worth $20 for $16 is buying a dollar for 80 cents, and the 25% return comes from the .20/.80

Buying a dollar for 75 cents gives you a return of 33%