The Hidden Value in Share Buybacks During a Flat Rate Environment

With the Fed holding rates steady at 3.64% since April, and the S&P 500 up 1.6% in the past week, Lucas and Luna explore a counterintuitive value play: companies that are aggressively buying back their own stock. They examine how flat interest rates make share repurchases more attractive than debt repayment for cash-rich firms, and why this creates a hidden catalyst for value investors. The hosts walk through a specific case study of a major bank that is using buybacks to boost earnings per share while trading below book value, and discuss how to identify companies that are creating genuine value versus those that are just masking dilution. Lucas shares a simple framework for evaluating buyback quality based on purchase price relative to intrinsic value — a lesson straight from the Graham-and-Dodd playbook. This episode is essential listening for anyone trying to understand why some value stocks are waking up in late May 2026 while others remain sleepy. #ShareBuybacks #ValueInvesting #FederalReserve #InterestRates #EarningsPerShare #StockRepurchase #IntrinsicValue #BenjaminGraham #BankOfAmerica #FlatYieldCurve #CapitalAllocation #CashFlow #BookValue #ValueTrap #FexingoBusiness #BusinessPodcast #Finance #InvestingPodcast Keep every episode free: buymeacoffee.com/fexingo