3min chapter

The Compound and Friends cover image

Dan Nathan Predicts Recession

The Compound and Friends

CHAPTER

The Only Argument I've Heard About Buybacks

The only argument against buybacks is something I've heard on an Epsilon theory, which is basically like some companies use as a form of really big share compensation. But that has nothing to do with buyback. Buybacks is the tool. It's like you're using a hammer to like do something bad. You know what I mean? Scott: Buffett since he bought Apple and he's made hundreds of billions in his Apple investment. He had to take Tim Cook out to dinner twice to get the buyback thing started. The buybacks are taxed at a much lower rate than dividends and it's currently 1% which we'll have a trillion dollars worth of buybacks here regardless.

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