This Ray Dalio thing is above my financial literacy level, but it tracks with my anecdata. I hear people complaining about struggling to make rent, and people struggling to find a place to put hundreds of millions.https://www.linkedin.com/pulse/world-has-gone-mad-system-broken-ray-dalio/?fbclid=IwAR0kRor9Dt94pHKZxjvy9Ze_Kaki1nE8Bwytdj9Kd5_6EIwLln81EvlmuWk …
Texas Instruments sells calculators that haven’t changed in decades. Flat sales, same product, same thing year after year: that sounds like the kind of company that would pay stock dividends in the old days. Aren’t buybacks equivalent to dividends? Doesn’t this make sense?
-
-
Boeing slashing costs and paying out a ton to its shareholders is kind of scary from the public’s perspective because if you skimp on engineering in airplanes, people die. I’m not as sure that this applies to all businesses though.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
The point isn't about buybacks in isolation, it's about buybacks in combination with issuing stock options to upper management. If you issue an option on stock, have that option exercised, then buyback that stock, it's essentially the same as just giving $$.
-
The difference between buybacks and dividends is that buybacks sterilize the share dilution from issuing options, so it's not obvious to shareholders that a large % of the money is going to management in particular, in the name of going to them in general.
- 1 more reply
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.