Stock Splits and Share Buybacks: What Every Investor Should Know

About this episode

In this episode, Andrew Temte discusses stock splits, share buybacks, and their implications for investors.

In this episode of Money Lessons, Andy breaks down the three most common ways companies change their share structure. He explains how stock splits work — including Apple's five splits and Warren Buffett's famous refusal to split Berkshire Hathaway—and why reverse stock splits often signal trouble. He then explores share buybacks, how they boost earnings per share, and why investors need to look past the headline numbers to see whether real value is being created. The episode also covers dilution and why issuing new shares comes at a cost to existing shareholders. AndrewTemte.com

People in this episode

Host: Andrew Temte

Topics covered

• stock splits
• share buybacks
• investor education
• earnings per share
• share dilution

Keywords

• stock splits
• share buybacks
• investing
• earnings per share
• dilution

Mentioned in this episode

Organizations: Apple, Berkshire Hathaway

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