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Dividends are a stockholder's friend. Stock buy backs are a monumental waste of capital. They used to be against the law. They really are an abrogation of fiduciary responsibility. This money should have been distributed to the shareholders in the form of dividends or reinvested in the corporation.
I have a few ideas on ways they could reinvest that 6B in the corporation.
I'm not saying they are a good expenditure. Never said that. All I am saying is that the perception that it enriches the executives is minimal at best because with the amount of stock we have outstanding, it won't move the needle enough to "enrich" anybody. They already invest 1/4 of the profits in the employees, pretty hard to justify doing a bigger percentage than that from a business perspective. Do you disagree with that?Originally Posted by orvil
Carl is right on this one. Dividends are a stockholder's friend. Stock buy backs are a monumental waste of capital. They used to be against the law. They really are an abrogation of fiduciary responsibility. This money should have been distributed to the shareholders in the form of dividends or reinvested in the corporation.
I have a few ideas on ways they could reinvest that 6B in the corporation.