We have a choice: buybacks or bailouts. Buybacks are just a tax efficient method of transferring money from companies to their shareholders. That’s the reason why companies exist, to allow their shareholders to profit. The problem with buybacks is that they are easily gamed by
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hence why we see activists pushing for more buybacks. Ever seen an activist ask for less buybacks? That suggests on the margin buybacks are efficient, not vice versa.
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We see buyback requests from activists because it benefits them. Whether or not they are efficient is irrelevant.
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