Hongkong Land announced on 6 Sep 2021 to buy back its shares for up to US$500 million. That’s about 5% of its market cap and hence a sizeable repurchase programme. The market welcomed the news and it sent the share price up by 12.6% the following day! But the euphoria died off quickly. The ongoing Evergrande FUD and its impact on Hongkong Land’s position as a property developer won resulting in a quick sell-off after the surge. Since then, the Evergrande issue has diminished and the power of the share buyback continues to spur the share price higher: What is a share buyback and is it really good? Warren Buffett once said, “The best use of cash, if there is not another good use for it in business, if the stock is underpriced is a repurchase.” In a nutshell, share buyback is a good thing if the share price is low and the stock is undervalued....