1
The Superbar / Re: Investing Thread
« Last post by MUBurrow on Today at 01:58:56 PM »I dont disagree with the biggest of the sentence, but this is silly. It benefits all shareholders equally (on a percentage basis). It not like a shareholder only gets stock price appreciation if they have a 7 figure position or above. 10% is 10%. Parsing stock price activity because larger positions means larger profits is bizarre to me.
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.