Look for companies with a history of shareholderfriendly actions from "summary" of Buffettology by Mary Buffett,David Clark
When searching for companies to invest in, it is important to pay attention to their track record of treating shareholders well. A company that consistently takes actions that benefit its shareholders is more likely to be a sound investment choice. Shareholder-friendly actions can include things like paying out dividends, buying back shares, and investing in growth opportunities that will increase the value of the company over time. Dividend payments are a clear indicator that a company is committed to sharing its profits with shareholders. When a company regularly pays dividends, it shows that they value their investors and want to reward them for their investment in the company. Buying back shares is another way that companies can reward shareholders. By reducing the number of outstanding shares, a company can increase the value of each remaining share, benefiting existing shareholders. Investing in growth opportunities is also important when considering shareholder-friendly actions. Companies that reinvest their profits into projects that will increase the value of the company over time are more likely to see their stock price rise, benefiting shareholders in the long run. By focusing on companies with a history of shareholder-friendly actions, investors can increase their chances of seeing a positive return on their investment.- It is essential for investors to look for companies with a history of shareholder-friendly actions when considering where to put their money. By choosing companies that prioritize the interests of their shareholders, investors can increase their chances of seeing a positive return on their investment. Shareholder-friendly actions like dividend payments, share buybacks, and investments in growth opportunities are all indicators of a company's commitment to rewarding its shareholders.
