Michael Mauboussin on How to Read Stock Prices (Podcast)
Masters in Business
00:00
Market Efficiency and Stock Buybacks
This chapter explores the market's ability to discount future values, particularly focusing on electric vehicle manufacturers and the impact of low-interest rates on company performance. It delves into the contentious issue of stock buybacks, discussing their implications for shareholder value and corporate decision-making, while using examples from companies like General Electric. Furthermore, it highlights the psychological factors influencing executive choices between dividends and buybacks, emphasizing that successful buyback strategies can lead to positive outcomes for shareholder prices.
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