Share buybacks are responsible for around a quarter of the price gains

rising trend

Share buybacks are an important price driver.

(Photo: Moment/Getty Images)

Dusseldorf Corporate share buyback programs are often criticized as unimaginative, anti-growth, and short-term oriented. However, an exclusive evaluation shows that shareholders benefit not only in the short term but also in the long term from share buybacks. Because this increases the demand for the remaining shares available on the market – and that drives the price.

In this way, share buybacks have been responsible for around a quarter of price gains in the US and Europe over the past decade. This is the result of an evaluation with several million data points that the asset manager HQ Trust created for the Handelsblatt.

The multi-family office of the Harald Quandt family has broken down the performance of the MSCI All Country World Index (ACWI) over the past ten years into its components. The ACWI tracks the performance of nearly 3,000 companies from 23 developed and 24 emerging markets.

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