TheMotorcycleBoy wrote:johnhemming wrote:There is no reason why a company must buy back some stock.
In my view it is a good thing to do in the right circumstance (when the price is low enough).
My view is that in theory it's Ok. That is, stock is undervalued and the firm is cash-rich.
In theory, of course.
However, company directors are not on the board because of their market-timing expertise, but to run the business. In reality, successful investors like Terry Smith (of Fundsmith) have categorically stated that share buybacks,
in practice do not benefit shareholders.
Further to my asking JoyofBrexit twice for examples of this so-called beauty, they, nor indeed any poster, has offered any such example.
I'll ask for the third time:
JoyofBrexit8889 wrote:All too often we see on these boards grumpy Fools whinging that a share buyback is taking place. The petulant mutterings usually go something like this: “Buybacks are reducing my dividend.... They used to be illegal...management want their share options to trigger”
They are, of course, entitled to their opinion.
No matter how wrong they are.
Please provide examples to back up your argument.