Re:GameStop missed out on capitalizing on the Reddit rally
by pinky1417 on Thursday February 11, 2021 @11:22AM
(#26103386)
You might be interested in reading about Henry Singleton, the Michael Jordan of capital allocation. While running Teledyne, he shrewdly issued shares in exchange for acquisitions when Teledyne's stock was expensive. When shares were cheap and he didn't have other investment opportunities, he smartly bought back stock.
Beat the pants off Jack Welch yet fewer people know about him.
http://csinvesting.org/wp-content/uploads/2015/05/Dr.-Single...
Re:GameStop missed out on capitalizing on the Reddit rally
by sokoloff on Thursday February 11, 2021 @11:28AM
(#26103486)
Indeed. Outsiders book treatment of this story was great.
Re:GameStop missed out on capitalizing on the Reddit rally
by mannykannot on Thursday February 11, 2021 @08:43AM
(#26101394)
> Buying back shares knowing they're massively overvalued would be destroying shareholder value.
That is an interesting way of putting it. Sam Palmisano took IBM on a massive buyback program a decade ago, and nothing about IBM since then has refuted your thesis!
If that's all true, selling shares when the market is over-valuing them seems like it's creating shareholder value to me. (It's unethical perhaps; perhaps it's illegal. Either of those would be reasons to think it's harming shareholder value, but the sale itself is creating value.)