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If a company is swimming in cash, shouldn't that be going to investors in the form of dividends? This ideology of hoarding cash pushed by guys like Buffet is a
by povertyworld 7y ago
If a company is swimming in cash, shouldn't that be going to investors in the form of dividends? This ideology of hoarding cash pushed by guys like Buffet is a sign of a warped economy.
- rhino369 7y agoBuybacks are equivalent to dividends, but with less taxation.
- povertyworld 7y agoI don't have a problem with buybacks either. There was a time when Buffet argued to people that holding cash was worth some multiple greater than returning the cash, and he was probably right. I'm just saying that is more indicative of a "warped economy" than a business actually returning money.