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I'm curious. Isn't buyback a kind of investment in yourself? If you think that stock of your company is undervalued in the market, wouldn't it be reasonable th

• anthony_doan 7y ago
  Well the main argument is that the politicians want companies to invest from the tax cuts into more jobs. Where as companies, in reality, are just doing buy back which reward shareholders. Whether buy back is an investment or not is up to whoever definition's and I guess can be up for debate. But I think it derail the main point which is tax cuts and low federal rates aren't incentivizing companies into investing but instead buyback.
• Synaesthesia 7y ago
  It's not a productive investments. It's just taking profits and giving them to the stockholders.
• AmericanChopper 7y ago
  You’re pretty much getting it, this whole thread is based on some deeply flawed reasoning. The company gets some capital, buys back shares, where’s that capital going to go next? Unless the shareholders have decided that they no longer want returns on their capital, it’s going to be invested again somewhere else.
• jumbopapa 7y ago
  This was my thought too and it can be a good investment. If you think your stock is undervalued by a certain amount then why wouldn't you buy up the stock at the lower price? You can pour money into R&D, but if you could take what could be a potentially free return then I don't know why you wouldn't take it.