Only for the Long Term Investor

"This discussion of repurchases offers me the chance to address the irrational reaction of many investors to changes in stock prices."

"When we buy a stock in a company that is repurchasing shares, we hope for two events: ... earnings ... will increase at a good clip ...; and second, we also hope that the stock underperforms in the market for a long time as well."

Buffet, 2011 Letter to Investors