3 ms·
Completely moronic take. Stock buybacks are just a more tax efficient form of dividend. If the author's argument is that companies should never return any money
by cm2187 1y ago
Completely moronic take. Stock buybacks are just a more tax efficient form of dividend. If the author's argument is that companies should never return any money to investors, either as dividend or stock buybacks, then what is the point of owning a share in the first place.
- dcminter 1y agoIt's a very odd take. Not sure on what basis the author's blaming Trump for it either (and I'm no fan of the orange guy).
- SvenL 1y agoWell, there are voting rights. This way you should have influence on the development of the company and therefore influence on the stock price. Which gives a shareholder money back if he/she sells.
- quantified 1y agoThe only driver of the price at that point is the price that the company would buy shares back for, because that's the only vehicle to return cash. If the company gave preferences to shareholders (like discounts on the trucks it makes, flights it makes, rides it shares, etc.) or only sells to them, there could be other sources of value.