No. Generally speaking, I want corporations to return capital in excess of operating needs to shareholders unless they have actual high-expected-return, ready-to-be-executed plans for what to do with their money.
When corporations just invest because they have money, there is a gigantic agency problem, and executives have a tendency to burn shareholder value on vanity projects and fancier headquarters.
Stock buybacks are exactly what I want wealthy companies to be doing with money they don't have a high expected ROI for.
When corporations just invest because they have money, there is a gigantic agency problem, and executives have a tendency to burn shareholder value on vanity projects and fancier headquarters.
Stock buybacks are exactly what I want wealthy companies to be doing with money they don't have a high expected ROI for.