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Buybacks are a terrible waste of shareholders' money and is akin to putting lipstick on a pig. The only reason why IBM has had relatively decent numbers is bec
by pfarnsworth 11y ago
Buybacks are a terrible waste of shareholders' money and is akin to putting lipstick on a pig. The only reason why IBM has had relatively decent numbers is because of the financial engineering associated with buybacks. Unfortunately, it all blew up with the current CEO who has to deal with the fact that revenues are dropping like a rock and can't be out-engineered anymore.
- riggins 11y agoWarren Buffet is on the phone for you ... He says when the intrinsic value of a company is greater then the price implied by the stock, buybacks benefit the shareholders .. And when the intrinsic value is less than the price implied by the market price of the stock buybacks are bad for shareholders.