The Cyclicality Of Percentage Buy-Backs: Costco Edition

Currently looking through Costco - i of the finest companies I know. (We produce non ain a stake...)

Anyway this is hardly a Costco specific comment - but hither is a run of their buy-backs (after issuance/option practise etc). Negative numbers are cyberspace repurchases.

Year Ended	Cash from stock issuance ($million)
2,016	-412
2,015	-395
2,014	-212
2,013	77
2,012	-459
2,011	-355
2,010	-348
2,009	2
2,008	-548
2,007	-1644
2,006	-1039
2,005	-135

The fellowship - every bit yous tin run across - has bought dorsum a lot of stock. The lack of a buyback inwards 2013 followed a purchase of a non-controlling stake inwards Costco Mexico.

But whatever - the fellowship stopped repurchasing stock at the bottom of the marketplace inwards 2009 - alone to get-go over again inwards earnest every bit the marketplace together with their stock cost went up.

This happens inwards most alone cases - together with inwards this illustration I produce non intend the board is mendacious inwards manipulating their stock. It only happens.

And it fifty-fifty happened amongst Charlie Munger (who is to a greater extent than than passingly rational) on the board.

Just saying.





J