Companies Use Borrowed Billions to Buy Back Stock, Not to Invest

Re:Companies Use Borrowed Billions to Buy Back Stock, Not to... by nemonemo on Saturday August 10, 2019 @09:04PM (#20665550)

Or, when a better investment opportunity is on the horizon. If an economic recession serious enough to affect good companies is looming, and if some savvy people with capital know it coming by the data or instinct, they might hold off their investment until the time comes so that the can "invest" or acquire those good companies at a better term.

[ Parent | on HN ]

Re:Companies Use Borrowed Billions to Buy Back Stock, Not to... by formercoder on Sunday August 11, 2019 @12:00AM (#20666153)

There is record private equity dry powder right now. Money is on the sidelines waiting for asset prices to come down and investors are only buying recession safe assets.

[ Parent | on HN ]

Re:Companies Use Borrowed Billions to Buy Back Stock, Not to... by TAForObvReasons on Saturday August 10, 2019 @09:08PM (#20665565)

If that were the case, why wouldn't the companies just hold onto the cash, wait for the recession, then use the cash reserves to buy back their stock on the cheap?

[ Parent | on HN ]

Re:Companies Use Borrowed Billions to Buy Back Stock, Not to... by nemonemo on Saturday August 10, 2019 @09:13PM (#20665577)

I was answering to the comment (paywalled by the article), and I believe a few companies do hold onto the cash when they see the opportunity, but probably not many would have the gut or the data.

[ Parent | on HN ]