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After over 100 billion of stock buybacks since 2005.

s1artibartfast 2y ago
That's not some gotcha. buybacks and dividends are the entire point of a company. Product sales and employment are simply a byproduct and tool to achieve that goal.
- saulpw 2y ago
  "Money is like gasoline during a road trip. You don't want to run out of gas on your trip, but you're not doing a tour of gas stations. You have to pay attention to money, but it shouldn't be about the money." - Tim O'Reilly
  - s1artibartfast 2y ago
    I think that's really good advice for governing one's personal life or running a lifestyle business. I don't think it is a accurate reflection of the desires of shareholder owners - they aren't there to enjoy the ride.
    - SturgeonsLaw 2y ago
      That's the difference between being a shareholder and running a business. For those who are actually driving things, they need to focus on more than just money to really be successful. For shareholders who have some distance from business operations, they can make do with "number go up".
      - s1artibartfast 2y ago
        Sure, it requires a broad set of tasks and strategy to make the money go up. It would be stupid to think otherwise. But that is still the end goal when running a business for someone else. Fun, cool tech, employees, or whatever else is in service of that goal.
- elzbardico 2y ago
  I wouldn't put dividends in the same dirty bucket as buybacks. Buybacks are just a way to manipulate the market and dodge taxes.
  - s1artibartfast 2y ago
    Im one of the people that thinks they are functionally the same with a tax benefit (not a dodge) Manipulation of the market rings hollow. The price changes, but there is no deceit. Running a successful business or starting a dividend also changes the price, but isn't manipulation. Who exactly is duped by BuyBacks?
    - FateOfNations 2y ago
      The only segnificant difference is that with stock buybacks, they have a bit more control over how and when it happens. Investors have turned dividends into a religion. They must come every quarter like clockwork and never decrease; otherwise, it seems like there's a five-alarm fire and the place is on the brink of bankruptcy. It is irrational but reality.
      - s1artibartfast 2y ago
        you are preaching to the choir.
  - mlazos 2y ago
    They’re the same. They publicly announce both on earnings calls and both increase demand for a stock.
  - ac29 2y ago
    Buybacks dont dodge taxes, they just defer them.
    - s1artibartfast 2y ago
      I wouldn't even say they defer them, because the taxable event has not occurred. It allows people too let leave their money at risk longer, including the gains. If BuyBacks make stock price go up, stockholders haven't made any money yet. They can be wiped out at any time and lose everything. BuyBacks simply give the shareholders the choice of if and when to cash out any gains and losses they may have.

That's not some gotcha. buybacks and dividends are the entire point of a company. Product sales and employment are simply a byproduct and tool to achieve that goal.

saulpw 2y ago
"Money is like gasoline during a road trip. You don't want to run out of gas on your trip, but you're not doing a tour of gas stations. You have to pay attention to money, but it shouldn't be about the money." - Tim O'Reilly
- s1artibartfast 2y ago
  I think that's really good advice for governing one's personal life or running a lifestyle business. I don't think it is a accurate reflection of the desires of shareholder owners - they aren't there to enjoy the ride.
  - SturgeonsLaw 2y ago
    That's the difference between being a shareholder and running a business. For those who are actually driving things, they need to focus on more than just money to really be successful. For shareholders who have some distance from business operations, they can make do with "number go up".
    - s1artibartfast 2y ago
      Sure, it requires a broad set of tasks and strategy to make the money go up. It would be stupid to think otherwise. But that is still the end goal when running a business for someone else. Fun, cool tech, employees, or whatever else is in service of that goal.
elzbardico 2y ago
I wouldn't put dividends in the same dirty bucket as buybacks. Buybacks are just a way to manipulate the market and dodge taxes.
- s1artibartfast 2y ago
  Im one of the people that thinks they are functionally the same with a tax benefit (not a dodge) Manipulation of the market rings hollow. The price changes, but there is no deceit. Running a successful business or starting a dividend also changes the price, but isn't manipulation. Who exactly is duped by BuyBacks?
  - FateOfNations 2y ago
    The only segnificant difference is that with stock buybacks, they have a bit more control over how and when it happens. Investors have turned dividends into a religion. They must come every quarter like clockwork and never decrease; otherwise, it seems like there's a five-alarm fire and the place is on the brink of bankruptcy. It is irrational but reality.
    - s1artibartfast 2y ago
      you are preaching to the choir.
- mlazos 2y ago
  They’re the same. They publicly announce both on earnings calls and both increase demand for a stock.
- ac29 2y ago
  Buybacks dont dodge taxes, they just defer them.
  - s1artibartfast 2y ago
    I wouldn't even say they defer them, because the taxable event has not occurred. It allows people too let leave their money at risk longer, including the gains. If BuyBacks make stock price go up, stockholders haven't made any money yet. They can be wiped out at any time and lose everything. BuyBacks simply give the shareholders the choice of if and when to cash out any gains and losses they may have.