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If you measure 'profit' as 'how much does the net worth of our owners go up', stock buybacks make a lot of sense. This seems like a particularly terrible measu
by johnecheck 1y ago
If you measure 'profit' as 'how much does the net worth of our owners go up', stock buybacks make a lot of sense.
This seems like a particularly terrible measure of success for everyone but those owners.
- simianwords 1y agoThis is too circular. Profit is just revenue - cost. The stock values depend on current and future risk adjusted profit.
- TylerE 1y agoIn theory. In practice the stock prices of many large companies seems to be completely decoupled from any thing even resembling economic reality. Does anyone really think Tesla is worth more than every single other automaker combined? That’s what the stock price (market cap) is saying.