- I’ll explain how buybacks destroy your value.
- It’s important not to own GE-like companies going into the next economic downturn, which is nearing.
- $517 billion per year could be invested much better.
If there is something I am against, it’s buybacks that are made at any price. Would you pay $3.5 million for a house when the building cost plus the land cost just $1 million? Probably not, but that is exactly what corporate managers do on a daily basis while they keep telling you how good of a thing they are doing. Buybacks might seem like a good idea, but it destroys your value in the long term. Let me explain what’s going on. More →