Is First Citizens BancShares ($FCNCA) Quietly Engineering a Banking Empire No One Saw Coming?
You can ask what if the company decides to fxxk itself up and wouldn’t the stock be worthless? The same can be said about a company that returns with dividends. If they fxxk themselves up, your dividends will be reduced in the future, which means the share is worth less.
For that $1 that a company earns, if they return to you, it is up to you to spend or redeploy it.
When the company buys back its shares, they think they are worth it relative to other stuff. But do we agree?
If we put that $1 and buy FCNCA, we are paying close to book value for more FCNCA, but how much would that $1 earn in the future?
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