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neutronicus • yesterday at 8:59 PM • 0 replies • view on HN

They're currently a replacement for dividends because dividends are less tax-efficient than stock buybacks.

I struggle with the same initial impression as you, and have reached an uneasy peace with the status quo by telling myself that the stock price is about the amount of dividends the company could issue in a dividend-friendlier tax environment, once its growth plateaus and it goes into cash-cow mode.