Quote:
Originally Posted by sebastian_dangerfield
They do have a good way to invest their cash. But investing in operations and workers pays out over the long haul. Buybacks get management that sweet sweet IBGYBG money now.
|
If you're right, then buybacks are always a bad idea. But you're not right. Some companies have a lot of cash, and don't see good ways to invest it. How much cash is Apple sitting on? Why would it be wrong for Apple to buy them back?
Quote:
|
And in IBM’s case, they were strategically buying back shares owned by management. I guess that’s ok, because it’s public, so if it wasn’t ok, there’d have been issues. But that’s some really brazen self dealing.
|
OK, we agree that at least some buybacks are a bad idea. It just seems to me that they can be legit too.
