Buybacks: The company says buy, but insiders sell – The Washington Post

VEA Vice Chair Nell Minow is quoted in this Washington Post story about executives selling their stock into buybacks: Repurchases enrich executives several ways, says Nell Minow, vice chair of ValueEdge Advisers, which counsels investors on corporate governance issues. “It’s a triple dip,” Minow said, that works like this: Here’s how stock buybacks work and…

Boeing and the siren call of share buybacks | Financial Times

One of the oddities of the modern US stock market is its strong predilection for share buybacks. Rather than finding profitable outlets for their cash holdings by investing internally, corporations have taken to shrugging their shoulders and simply handing the stuff back en masse. The idea of shrinking the number of shares outstanding has acquired…

Why Are Stock Buybacks So Popular? – The Atlantic

VEA Vice Chair Nell Minow is quoted in this Atlantic story about buybacks. Today, another effort is under way to raid corporate assets at the expense of employees, investors, and taxpayers. But this time, the attack isn’t coming from the outside. It’s coming from inside the citadel, perpetrated by the very chieftains who are supposed…

Make Passengers Safer? Boeing Just Made Shareholders Richer.

Our research, based on publicly available information, strongly suggests that the dedication of Boeing’s senior executives to increasing their company’s profits and stock yield—which also augmented their own compensation—resulted in management decisions that contributed to the two 737 MAX crashes. While much more information remains to be discovered, the reported evidence, still unfolding almost daily,…

Stocks: Too Many Companies Are Paying Too Much for Buybacks | Fortune

You know the rule: Buy low, sell high. Public companies, it seems, haven’t learned this basic investing lesson. They’re buying back more of their own shares than ever before: In 2018, on the heels of tax reform, the amount of buybacks surpassed $1 trillion in a year for the first time ever. While the amount…

Study: Buybacks Do Not Impede Long-term Growth [But…..]

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,…