When a publicly traded company has excess capital, it can use it in different ways.
It can sit on the cash.
It can pay down debt.
It can invest it.
It can return capital to shareholders.
It can buy back its own stock.
If a company has a strong balance sheet it probably will look to invest the cash, return the capital, or initiate a stock buyback program.
Stick with me here.
Let’s focus on a stock buyback.
If a company cannot find an attractive investment opportunity in the market and cannot find a good way to deploy the capital, it can buy back its own stock.
In essence the company is investing in itself.
So why am I thinking about this and writing about this?
That’s how I feel about myself and my life right now.
That’s what I’m doing.
I’m looking for an attractive opportunity.
I know my value.
I know my worth.
I’m ready to jump on something.
There’s just not any opportunity that looks that promising and attractive to me right now.
So I’m patiently waiting.
As I wait, I’m investing in myself.
I’m buying my own stock.
As I invest in myself, my value is increasing.