Originally Posted by
galaxy flyer
Just to provide balance, another opinion,
https://www.aier.org/article/in-defe...hare-buybacks/
Companies that buy back their own stock don’t see better investment opportunities inside the company or industry. Holding lots of excess cash is an invitation for raider mischief. Taibbi mentions debt trades for stock. Well, the problem isn’t stock buybacks, it’s our stupid tax code taxing income wherever it is earned forcing companies to hold cash overseas rather than repatriate it. Ask any American expat how nasty the US code.
Good article, and I appreciate you posting it.
I'm not an economist: but it stands to reason that there has to be a way to avoid raider mischief: Apple has an unreal amount of cash, but you don't see huge banks buying it out to raid their cash reserves. Which, since legal, would be a totally "capitalist" thing to do. At least for the purchaser...not so much for a hollowed out Apple.
Plenty of regulatory changes that need to happen; now seems like an extraordinarily good time to do it.
But at the very least, I'd rather see "excess" profits returned to shareholders via dividends.