03-21-2016, 12:31 PM
I enjoy buybacks IF that results in the total amount of outstanding shares decreasing considerably over time. I mean, that is the whole point isn't it? If this is not accomplished then all the cash that went into buybacks was basically just used to pay things like executive compensation etc.
So when buybacks actually result in me owning more of the company than I did before then I see it as a good thing, and while I still prefer my dividend I certainly do not mind a certain amount of money being used regularly to reduce the overall sharecount. I do not have the luxury of a tax-sheltered account so buybacks, if executed correctly, bring more value to me than reinvesting dividends.
So when buybacks actually result in me owning more of the company than I did before then I see it as a good thing, and while I still prefer my dividend I certainly do not mind a certain amount of money being used regularly to reduce the overall sharecount. I do not have the luxury of a tax-sheltered account so buybacks, if executed correctly, bring more value to me than reinvesting dividends.