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Oh my, JB strikes again! His head is so in the game, he just keeps getting better and better. "He's a bookmark!"
I came by the paper he attends last week. Almost posted it to MFO, but felt I couldn't do so in good conscience before reading the whole burrito. For those who experience vertigo/static hypotension from reading David's monthly commentary, this paper is not for you. For those who saw all the massive share buybacks occurring late last year, and smelled something fishy, this paper will explain your concerns, as well as just about everything you'd ever want to know about share buybacks and the impact it has on a corporation's finances and your investment in them.
At the time I downloaded it to my computer, it did not require a subscription. It is a masterful paper; don't miss it. [I'll try to find the link to it; I think I got it from one of Tadas Viskanta's Abnormal Returns daily lists]
William Lazonick, “The buyback wave has gotten so big, in fact, that even shareholders—the presumed beneficiaries of all this corporate largesse—are getting worried.” (HBR)
The linked article came up for me with a simple mouse-click, but it's just a teaser--- a few paragraphs. Registration required to get to the rest of it. ".....If the U.S. is to achieve growth that distributes income equitably and provides stable employment, government and business leaders must take steps to bring both stock buybacks and executive pay under control. The nation’s economic health depends on it...."
Comments
I came by the paper he attends last week. Almost posted it to MFO, but felt I couldn't do so in good conscience before reading the whole burrito. For those who experience vertigo/static hypotension from reading David's monthly commentary, this paper is not for you. For those who saw all the massive share buybacks occurring late last year, and smelled something fishy, this paper will explain your concerns, as well as just about everything you'd ever want to know about share buybacks and the impact it has on a corporation's finances and your investment in them.
At the time I downloaded it to my computer, it did not require a subscription. It is a masterful paper; don't miss it. [I'll try to find the link to it; I think I got it from one of Tadas Viskanta's Abnormal Returns daily lists]
Finance
William Lazonick, “The buyback wave has gotten so big, in fact, that even shareholders—the presumed beneficiaries of all this corporate largesse—are getting worried.” (HBR)
http://hbr.org/2014/09/profits-without-prosperity/
(alas, it now appears to require registration and/or subscription)
forbes.com/sites/stevedenning/2014/08/18/hbr-how-ceos-became-takers-not-makers/