3 ms·

How is buying back shares a better usage of the money? Sincere question

• pathseeker 8y ago
  The market is a more efficient mechanism to allocate capital than a single set of executives at a company. As an Apple shareholder, you don't want Apple deciding where to invest your gains. You want those gains so you can decide where to invest them yourself depending on your risk profile , investment thesis, etc.
  • parasubvert 8y ago
    If this were true we wouldn’t need entrepreneurs
• Keyframe 8y ago
  It props the price of shares up.
• toasterlovin 8y ago
  Because large acquisitions almost universally turn out to be disasters, whereas stock buybacks at an 18 P/E ratio is a 5.5% return if profits don't grow and higher if they do (which seems likely).
• jonknee 8y ago
  It's a tax efficient way to deliver value to shareholders. If you want to be an Apple shareholder, you'll definitely be happy owning a slightly larger piece of Apple. You may or may not want to own Netflix, but if you do you can already go and do that without Apple deciding for you. The only M&A deals that I would want to see would be ones that help in their core business of selling technology to consumers. That would probably be companies no one has heard of that make and design components for future devices, semiconductor companies, etc.