A new study purports to show that stock buybacks do not impede long-term growth. Ira Kay and Blaine Martin conclude: Contrary to the common assertion that share buybacks damage long-term growth and investment, we found that companies conducting larger share buybacks (-12.8% change in common shares outstanding over four years) showed higher TSR, higher CapEx growth,…
Tag: buybacks
Marco Rubio rolls out his own plan to limit stock buybacks – MarketWatch
Sen. Marco Rubio on Tuesday is rolling out his own plan to thwart stock buybacks, aligning with Democratic rivals who have recently condemned corporate stock repurchases as a source of the widening gap between average Americans and the wealthy. The Florida Republican and former presidential candidate, according to CNBC, would reduce the incentives for buybacks…
Opinion | Restricting Stock Buybacks Will Hurt the Economy – The New York Times
CII and the BRT joined forces to oppose the Schumer/Sanders proposal on stock buybacks. But that does not mean they have no concerns about the current rise in buybacks, with a record-setting $1 trillion last year. VEA Vice Chair addressed the CII board this morning and we expect to hear more from them on this…
A Capitalist’s Solution to the Problem of Excessive Buybacks
VEA Vice Chair Nell Minow wrote about buybacks on the Harvard Law Forum on Corporate Governance and Financial Regulation: We may not need a government solution to the issue of excessive corporate stock buybacks. We most certainly do not need the solution proposed by Senators Chuck Schumer and Bernie Sanders, requiring companies to adopt minimum…
VEA Vice Chair Nell Minow on Motley Fool Money — The Motley Fool
VEA Vice Chair Nell Minow appeared on the Motley Fool Money podcast to talk about stock buybacks and Amazon. Amazon rebuffs the Big Apple. Coke fizzles while Pepsi sparkles. And NVIDIA stops the bleeding. Analysts Andy Cross, Ron Gross, and Jason Moser discuss those stories and talk Activision Blizzard, Shopify, Restaurant Brands International, and UnderArmour….
Opinion | Schumer and Sanders: Limit Corporate Stock Buybacks – The New York Times
Senators Chuck Schumer and Bernie Sanders have a proposal to restrict stock buybacks by requiring companies to pay employees at least $15 an hour before they can buy back stock. First, stock buybacks don’t benefit the vast majority of Americans. That’s because large stockholders tend to be wealthier. Nearly 85 percent of all stocks owned…
The Investment That Cost Apple $9 Billion in 2018 – WSJ
VEA Vice Chair Nell Minow is quoted in this WSJ article about buybacks: Apple Inc. has lost more than $9 billion this year on an underperforming investment—its own stock.Like many large companies, Apple has used much of its windfall from the 2017 tax overhaul to buy back shares. But the recent plunge in stock prices…
Buyback Cannibalism Was the Final Death Blow to Sears
Would $6 billion in cash have kept Sears out of bankruptcy? It sure wouldn’t have hurt. Sears’ ability to stay in business is in doubt after the company filed for bankruptcy protection this month. Yet Sears spent $6 billion buying back its own shares since 2005 in a futile effort to help support its stock…
The Biggest Buyers of American Stocks Are on the Sidelines Right Now – The New York Times
It isn’t counterintuitive to us — we have been concerned about the quantity of buybacks for some time, even more so since the Trump Tax Cut. This piece points out that the use of so much capital for buybacks has ripple effects for the market and the economy. It may seem counterintuitive, but the largest…
Bed Bath & Beyond — Bad Buybacks, Stock Price Tumble, and Shareholder Vote Overrides
What is going on at Bed, Bath and Beyond? Stock price: Shares of Bed Bath & Beyond lost almost a quarter of their value in morning trading on September 27, as the company’s performance continues to deteriorate to the lowest level in 18 years. Buybacks: Bed Bath & Beyond Inc.’s (BBBY) buyback strategy could be…
