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The Superbar / Re: Investing Thread
« Last post by JWags85 on Today at 02:26:42 PM »I mostly agree, but I think there are a lot of times where a board approves a buyback with an eye toward its stock ledger, too. E.g. if a company has a relatively high proportion of outstanding shares from exec compensation or past mergers, the board knows that when they consider a buyback vs dividend or other uses for the cash. I think buybacks can sometimes be used to help founders and execs get liquid without having to sell their shares and raise questions of confidence in the company.
For sure, nothing you said here is out of bounds and no doubt a buyback can be a way for management to print money for themselves in a way. I just don't subscribe to the notion that shareholders and "large shareholders" need to be separate in any way to make it look any worse.