Legendary investor Warren Buffett explains why stock buybacks make "nothing but sense"
In an exclusive interview with legendary investor Warren Buffett, the CEO of Berkshire Hathaway, explained why stock buybacks, a practice that’s come under scrutiny lately, make “nothing but sense.”
  • A
    Share repurchases at sensible price & amount increases the ownership & intrinsic value for existing shareholders. But now a days, lots of firms are declaring share buyback at too high prices that diminishes the long term value of business. I wish TCS had repurchased a lot of shares at reasonable price.
  • T
    The Breeze
    Buy backs are really good for the company and it's share holders. Just think if a company pays a good dividend and it buys back 1 billion dollars worth of their shares that means they are paying their self that dividend and saving by not paying it out!!
  • S
    Companies use buybacks to artificially inflate the stock price for exec bonuses. That's hardly a good use of money - that was probably borrowed.
  • i
    Based on what I know, which isn't much, the Board of Directors make the decision to repurchase shares. The Board has the fiduciary responsibility to make a sound decision. Therefore, this isn't about CEO's boosting their bonuses. ---------- By the way, if the government hadn't intervened and passed policies that made it so companies compensated their executives with stock, this wouldn't be an issue. Once again, big government's unintended consequences.
  • C
    Cat On The Wall
    Stock buybacks make rich people even richer and they don't have to lift a finger. Make sense?
  • C
    So, Abbv did a stock buy back at 112.00 per share, today at 77. GE did stock buybacks and now at 9 bucks. Explain again how this is a good use of capital Warren. BTW he has never done a stock buyback ever
  • A
    Alex Trubeca
    I think I remember a few years ago, Buffett said the opposite.
  • B
    What about US manufacturing? We will fail at bringing manufacturing jobs back to the US as long as manufacturing corporations fail to put cash back in the infrastructure of these plants.
  • T
    Buffett is worlds best investor ever!!! Always will be!
  • b
    Warren and Cholly have thrown in the towel. They are hesitant to make a big splash again so they're taking the easy way out and buying BH. He has surrendered his Oracle of Omaha crown.
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