What happens to the money that people who sell during stock buybacks realize? If public stocks are mainly going up due to that, the money must be going into some other assset class or consumption, right? How does the equation balance?
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I’m wondering about the other side of the trade. What are people selling the retired stock buying instead?
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So money is getting concentrated in overvalued tech stocks because of buybacks at older companies that are now burdened with low-interest debt?
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Focusing in on just the second sentence. Are you saying buybacks drive up stocks because it distributes cash to the previous owners, who then invest the cash?
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Almost all of it stays in public markets (so other stocks). Some slippage into real estate (esp. when mgmt sells into buyback).
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