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Beware the Stock-Buyback Craze
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Now's the time for the corporations to step in and buy back stock, but they prefer to buy high and sell low.
Most boards would probably vote unanimously to hoard the cash at this point.
Link to original article.
https://www.wsj.com/articles/beware-...aze-1434727038Furthermore, companies tend not to be particularly savvy when buying back their own shares. Goldman Sachs Group, in a recent research paper, noted that buybacks peaked in 2007 with 34% of cash spent, and hit a trough in 2009 at 13% of cash spent. In other words, companies bought the most of their stock near the 2007 stock-market high, and the least near the 2009 bear-market low.
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