Quote:
Originally Posted by sebastian_dangerfield
The management did nothing to improve the business. It engaged in buybacks to jack the stock price. It created a share valuation that wasn't predicated on the underlying fundamentals of the business.
That sort of distortion is why we're going thru a depression and yet the stock market is only 15% off all time highs. Only instead of IBM buying back shit tons of its own stock, now the Fed is doing the purchasing.
Insane.
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Airlines? It's a massive logistics problem that they have continually "improved" (meaning reducing costs and improving efficiency, including by unbundling pricing). We passengers have hated it, but they've "improved" a ton lately.
Buybacks suck and suggest uncreative management, but have somehow acquired a weird level of ire. It's just a different form of dividend. I'd prefer to invest in companies that can find something better to do with the money, and would prefer a dividend instead, but it's still just handing cash back to shareholders. We should prevent them from doing that with government money, but doing it with their own earnings is a non-issue.
