Part 5/10:
Another piece of the puzzle involves share buybacks, frequently pitted against dividends. On the surface, stock repurchases appear beneficial as they increase earnings per share without immediate cash outflows. Yet, buyback effectiveness largely depends on the company's timing—issues arise when firms repurchase at inflated prices. For instance, Meta (formerly Facebook) saw its stock plummet following aggressive buybacks initiated at peak prices, demonstrating that buybacks aren’t foolproof.