alt Hacker NewsIt’s more like, “the executives with lots of shares can’t see how to make the company grow, so they’ll just use profits to pump up the share price for their gain”.
I deeply feel buybacks shouldn’t be illegal but treated shamefully.
Instead of using profits to build up long term savings or fund R&D, they basically choose to do as little as possible.
There is no vision.
Replies
wmf • today at 3:47 AM
Realistically, if the execs think they can't do R&D then they can't. If they tried they would just waste the money.
aoeusnth1 • today at 3:11 AM
Should companies never pay dividends?
ljlolel • today at 6:08 AM
Investments into vision can juice the stock price too. So they would do it if they had good realistic inspiring ideas
> Instead of using profits to build up long term savings or fund R&D, they basically choose to do as little as possible.
Isn't buying stock a form of long term savings? After all, they can always sell that stock when they want to "withdraw".
Sure, they may not get the same return as simply stashing it into a bank account, but it's also a statement of confidence in their future: "We are sure that our stock will outperform every other option there is for storing our money, because our long-term plans include extracting more profit from the market."