Value investing for beginners
Our companies and markets editor, Richard Beddard, offers a succinct guide to value investing.
Word of the Day
A company buys back and cancels some of its shares. The result is that the number of shares in issue falls so the earnings and dividends will be divided between a smaller number of investors. Buybacks are generally only used if the company's share rating is low enough to mean that a buyback will be beneficial to its earnings per share. Through their broker, companies will normally buy back shares held by large institutions; private shareholders rarely get the chance to participate.