NVR is a quintessential "share cannibal." Its business model generates massive free cash flow by not tying up capital in land. This cash is systematically used for aggressive buybacks, reducing the share count by 80% over 30 years and compounding EPS growth.

Instead of relying on venture-led secondary sales, Column uses 25% of its annual earnings to conduct its own tender offers. This provides regular liquidity to employees, enhances retention, and aligns the team long-term without the dilution from new funding rounds.

In sharp contrast to most US tech firms, Kaspi's stock-based compensation is less than 0.5% of its revenue. This means the share count remains flat over time without requiring costly buybacks, directly benefiting long-term shareholders.

Instead of traditional stock options that dilute shareholders, Lifco uses a synthetic option program personally backed by founder Carl Bennett's own shares. Executives are granted options exercisable in 2030, tying compensation directly to long-term stock performance while ensuring non-founder shareholders are not diluted.

The founder negotiated performance-based "kickers" into his growth equity deal. If the company achieves specific return multiples for investors (e.g., 2.5x, 3x), he personally gets equity points back. This advanced tactic aligns incentives and allows a founder to reclaim dilution by delivering exceptional outcomes.

Contrary to fears that buybacks harm liquidity, they are a critical advantage in illiquid markets like the UK. A consistent buyback program introduces a natural, daily buyer for a stock, providing a supportive price floor and predictable demand where none may exist.

Despite S&P 500 companies spending over a trillion dollars on share repurchases, the aggregate share count has not meaningfully decreased in 25 years. These buybacks primarily serve to counteract the massive stock dilution from executive compensation, creating an illusion of shareholder return while enriching insiders and levitating stock prices.

Companies termed "share cannibals" aggressively repurchase their own shares, especially when undervalued. This capital allocation strategy is often superior to dividends because it transfers value from sellers to long-term shareholders and acts as a high-return, low-risk investment in the company's own business.

Profitable, self-funded public companies that consistently use surplus cash for share repurchases are effectively executing a slow-motion management buyout. This process systematically increases the ownership percentage for the remaining long-term shareholders who, alongside management, will eventually "own the whole company."