Implications of Excessive Share Repurchases
Great article. Agree 100%
Great perspectives, Mike. I think it speaks to either limited creativity or limited opportunity for companies to reinvest in future opportunities.
For additional reading and great analysis on the topics of Stock Buybacks, I strongly recommend checking out Epsilon Theory which has done a number of great articles on the practice. Their analysis highlights that it's not just that companies don't have a better use for their cash, but it is an executive enrichment program, pushed under the banner of "this is good for shareholders". The trick is that many companies buy back shares with one hand while issuing a similar number from the other. The article below highlights a 10-year review of the practices at Meta, Google and Apple. With only Apple appreciably reducing their share count over the period.
This one illuminates a similar story at Bed, Bath and Beyond: