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A comment on How Satya Nadella turned Microsoft around. Parent comment

Re:How Satya Nadella turned Microsoft around by btilly on Friday October 23, 2020 @12:46PM (#24871370)
Inflating your stock price by buybacks is easier said than done.

In fact according to the CAPM economic model, it is impossible. The assets of the company decrease by the money spent on buybacks, which matches the value of stock bought and destroyed. This should leave the price per remaining stock unchanged.

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Re:How Satya Nadella turned Microsoft around by na85 on Friday October 23, 2020 @09:55PM (#24876283)
Sounds to me like the CAPM economic model is in need of revision. Buybacks are a common tool for increasing shareholder value and investor sentiment figures heavily in asset pricing.
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Re:How Satya Nadella turned Microsoft around by btilly on Friday October 23, 2020 @10:05PM (#24876318)
There are a number of reasons why buybacks can increase prices. See https://www.mckinsey.com/business-functions/strategy-and-cor... for a list.

All are second order effects.

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