SHW Sherwin – Williams Co

Share buybacks to boost stock prices.  Many companies are engaged in this strategy.

http://www.bloomberg.com/news/articles/2014-10-06/s-p-500-companies-spend-almost-all-profits-on-buybacks-payouts

“The intentions of a share repurchase plan are simple: to “return capital to shareholders” by spending money in a way that makes the stock go up and shareholders wealthier as a result.

The primary idea is that buying back existing shares decreases the supply of outstanding stock, and gives existing shareholders a bigger piece of the company.”  – Jeff Reeves

http://www.marketwatch.com/story/those-stock-buybacks-are-just-another-wall-street-scam-2015-03-12

Can you understand how SHW stock is worth 4 x what it was when the real estate market was in a bubble before the 2008 crash?

Can you buy and hold a stock like this?  Great looking chart, but does valuation actually matter at some point?

Share your thoughts about how this all ends.

SHW

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