While operations are certainly important, the role of capital allocation in the company’s future success is often overlooked. (Location 82)

Reinvest your dividends if you want to realize total equity returns! (Location 111)

One of the most essential qualities of a successful investment analyst is the ability to adapt to change. (Location 156)

If a stock trades at its intrinsic value, then a cash dividend and a stock buyback are identical. (Location 207)

In times when the underlying stock trades at a discount to intrinsic value, buybacks are a favorable use of cash. (Location 224)

Munger advised investors to “look for the cannibals”—meaning companies eating themselves with a consistently declining share count. (Location 231)

If a company buys back shares and the stock is overvalued, the company and the remaining shareholders transfer value to the selling shareholder. If the stock is undervalued, the person selling shares transfers value to the company and the remaining shareholders. (Location 241)

If they believe their stock is wildly overvalued, they should consider issuing shares to the market. They should consider buying shares if they believe their stock is a screaming bargain. (Location 246)

Note: They - CEO

If a company decides to deleverage and pay down debt, it can be seen as a transfer of wealth from the debt holder to the equity holder. (Location 926)

Compared with dividend payments and/or stock buybacks, debt reduction is a subtler form of rewarding shareholders. (Location 928)