Buybacks

Buybacks — a company repurchasing its own shares, shrinking the share count so each remaining share owns a larger slice of the business. Done when the stock is cheap, it’s capital allocation at its purest (Singleton retired ~90% of Teledyne’s shares); done ambiently across US markets, buybacks plus dividends recycle roughly 2–3% of market cap to holders yearly — a structural tailwind the index investor collects without asking.

First used in: 5.3 · The S&P leverage point and the barbell