- I applaud the majority of the 7 comments above which see stock buybacks programs as seriously flawed.
To see how bad stock buybacks compare to investments visit “The Net Profit Test” (https://corequity.blogspot.com/2016_04_01_archive.html) and you will see a graph that compares the annualized returns from buybacks to investments.
From the perspective of the Shareholder (vs the share seller), Buyback returns are simple interest vs compounding from investing.
CEOs that buyback their company’s shares are admitting that they don’t know how to invest the cash profitably. One would think that would be their most important responsibility.