Share buybacks are sillyThe idea might sound good but what's the point?
The only purpose of sharebuybacks is 'to increase the value of options to reward managers for the passage of time.' (Warren Buffet)
In addition, the results of sharebuybacks in companies that aren't growing show that not only do share prices remain stagnant and options remain underwater, but the money used for sharebuybacks are assets that are immediately converted to a value of zero.
eg. Can you redeploy this money towards more useful endeavours such as for innovation, marketing or sales. Nope, the money is just gone.
Money in. Money out. No value add.
dyodd
knowsjack