How to pronounce“buybacks”in English

Buybacks or share repurchases is the idea that companies can go into the open market and use some of the cash that they have

But buybacks have a big advantage from an investor's perspective because they get to choose.

dividend buybacks or dividends or stock buyback programs.

a pioneer in stock buybacks, he was much more than that because he sort of built a framework

And the few buybacks that have happened, have happened at lower valuations.

different from buybacks.

But another reason why buybacks and dividends are somewhat different is the taxation of them.

different than the stock buybacks.

to finance buybacks, that's somehow irresponsible behavior.

You have a lot of buybacks-- some from companies that have cash, and some from companies that have received cash-- but nonetheless.

And if you look at the way buybacks are typically implemented in public companies in the US, it's not surprising.

Why are they doing so many stock buybacks, rather than investing in building this electric vehicle capacity?

So let's talk about buybacks, Jules.

and you put a 1% tax on buybacks.

The only one that actually makes a ton of money are buybacks and dividends, returning capital to the shareholder.

So now let's think about another friction that makes buybacks somewhat different than dividends, right?

So the policy proposal in particular is let's tax buybacks at a 1% rate.

to make debt payments-- and then separately, buybacks, which keep the level of the market up.

Well, it seems pretty obvious that buybacks become less attractive.

They did their own analytical work around major corporate decisions, including acquisitions and buybacks.

Give it to yourself through executive compensation, give it to the shareholders through dividends and share buybacks.

And she was making, we were getting into it about share buybacks and dividends and listen, I'm not anti buybacks, I'm not anti dividends,

So first, what are buybacks exactly?

There are people out there, including the politicians that are now taxing the buybacks, that believe that dividends are somehow better and

a stock buyback or, we are going to tax stock buybacks to discourage you from doing them.

Some of it will probably be substituted for with higher dividend payments, meaning that if buybacks become less attractive firms may return some more capital

It's gone into inflating the value of stock, because it's been an artificial source of money that's been used not just for stock buybacks,

You look at leverage ratios, you look at their ability to do pretty much anything they want and return capital to shareholders-- big dividends, big buybacks--

So last year, 2014, corporate America set the record for most capital allocated to share buybacks

So the question is, these outsider CEOs, they're all sort of following the similar framework of doing buybacks or issuing stock managers,

So in the two years before the financial meltdown, the 500 companies on the S&P 500 were spending 70% of their profits on share buybacks.

But they haven't. So that last year, we spent $600 billion in share buybacks.

This guy is just thinking about how's my investor class going to feel about, the stock buybacks and how do I give them the fingers in

And I said, listen, maybe so, but I call for a tax on buybacks and dividends in the book.

We're talking about make it permissible, make it legal, buybacks and buybacks were illegal.

We had the bankruptcy episode ready to go, and at the last minute the Senate passed a 1% tax on buybacks.

And one obvious answer is that if we don't have full information, it might be the case that dividends are different from buybacks.

So the first question we need to answer is, why do you think people believe that share buybacks are a bad thing?

There's lots of liquidity options for the founder, for employees, for investors, for our own LPs, we've had liquidity through dividends through shareholder buybacks

checks and sent them out but they haven't been cast yet so we have some free float that way but it also appears as a cash out in their stock buybacks

And Jules and I had a buyback episode in the works and we just decided that given the relevance, we should just delay the bankruptcy

If they are choosing to do a buyback, they must think the price is lower than what they think the true value is.