Re:Stock buybacks are dangerous for the economy
by throw0101a on Tuesday March 17, 2020 @02:53PM
(#22608700)
> If a company does buybacks, [...] because they aren't investing that money into R&D [...]
False choice: a company can do R&D and do buybacks (or dividends).
The capital return is for excess cash that has no internal use. AAPL spent US$ 4.2B (7.9% of revenues) on R&D and had a dividend.
Sometimes there's a limit to how much you can do: companies have a finite number of employees after all, and there are only a finite number of projects that you may be able to handle at one time.
False choice: a company can do R&D and do buybacks (or dividends).
The capital return is for excess cash that has no internal use. AAPL spent US$ 4.2B (7.9% of revenues) on R&D and had a dividend.
Sometimes there's a limit to how much you can do: companies have a finite number of employees after all, and there are only a finite number of projects that you may be able to handle at one time.