DG
DIXIE GOLD INC
stock CVE

In theory, I agree with you. Buffet said the same many times. But the reality is Dollarama doesn’t really need the money it is using to buy shares, and they are committed to buybacks. This is a long term strategy that they will persue consistently. I don’t think that they want to be in the game of speculating on their stock. They did briefly slow down buybacks to divert cash flow to pay for their Australian acquisition. If they but into another country, I could see them slowing the buybacks again. One cautionary tale is DG, which underinvested in their business for many years while they were plowing a lot of their cash into buybacks. The shareholders are paying the price now.

In theory, I agree with you. Buffet said the same many times. But the reality is Dollarama doesn’t really need the money it is using to buy shares, and they are committed to buybacks. This is a long term strategy that they will persue consistently. I don’t think that they want to be in the game of speculating on their stock. They did briefly slow down buybacks to divert cash flow to pay for their Australian acquisition. If they but into another country, I could see them slowing the buybacks again. One cautionary tale is DG, which underinvested in their business for many years while they were plowing a lot of their cash into buybacks. The shareholders are paying the price now.