4 ms·

Dividends and share buybacks are not defensive moves.

• xpose2000 13y ago
  For Apple it is. “We acknowledge that our growth rate has slowed,” Tim Cook.
  • tptacek 13y ago
    Because the market they created is now saturated, with Apple dominating the profits.
• Osmium 13y ago
  I agree. Correct me if I'm wrong, but aren't share buybacks exactly what you'd do if you believed your stock was undervalued?
• r00fus 13y ago
  Exactly. It's company-sponsored arbitrage. If markets, according to company insiders, are not behaving rationally (AAPL P/E is amazingly 9.21, compared to ~15 for MSFT and ~24 for GOOG), then buying when you think it's cheap is a wise move.
  • cooldeal 13y ago
    Cliche at this point, but got to be said. "The market can stay irrational longer than you can stay solvent." John Maynard Keynes, (attributed) English economist (1883 - 1946)
    • ciniglio 13y ago
      That's probably true if you don't have >$100B in the bank
      • HSO 13y ago
        …and generate tens of billions in free cash flow per year!