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Mua lại cổ phần thường: Buffet không đồng ý với Biden
04 Mar, 2023
stock buybacks can be a boon for investors...
dấu hiệu tới phố Wall rằng công ty có bảng cân đối kế toán lành mạnh,
cổ đông cũng thích buyback hơn là cổ tức vì chịu thuế ít hơn,
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Buybacks can be a boon for investors. According to Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America, investors tend to reward companies that execute repurchases by, yep, buying more stock. Over the past five years, share prices went up for nearly 55 percent of the 2,997 companies tracked by Bank of America that repurchased shares.
More evidence supporting buybacks:
Repurchases signal to Wall Street that the company has a healthy balance sheet, and that attracts more investor interest, said Luis Garcia-Feijoo, research director at the CFA Institute Research Foundation. Exhibit A: Salesforce’s shares soared on Thursday after the company announced that it would buy back $20 billion worth of shares. Exhibit B: Meta’s stock also spiked when it made a similar announcement last month.
Investors tend to view buybacks more favorably than dividends — another common goody that companies bestow on shareholders. One reason: The former tend to carry a relatively light or imperceptible tax hit, Garcia-Feijoo said.
Buybacks don’t work for all companies. (Even Buffett admits this.) Shareholders tend to punish companies that repurchase shares that are already too pricey. Subramanian calculates that the 50 biggest companies in the S&P 500 are overvalued. For them, buybacks don’t make as much sense.
Companies may be buying back too many shares. Companies announced plans to buy more than $1.2 trillion of their own stock last year and could come close to, or surpass, that this year. Firms are spending roughly 90 percent of their earnings on buybacks and dividends, according to Bharat Ramamurti, deputy director of the National Economic Council. Some market pros are having second thoughts, too. In a December survey of global fund managers by Bank of America, 56 percent said they would prefer that the C.E.O. used excess funds to shore up the balance sheet; just 16 percent said they wanted to see more buybacks.
The verdict? According to Garcia-Feijoo, a prevailing view is emerging: “Buybacks are not so bad.” Buffett wins the argument, he says. — Bernhard Warner
Tags: finance
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