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The Biggest Buyer Of US Stocks Isn’t Going Away
Given how ubiquitous the hyper-scaler capex debate is in 2026, it's probably dawned on a majority of
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Good points. On a smaller scale some extra sales growth which raises cash flow other things equal, can help.That will probably be a bigger factor 2-3 years from now. The model for large cap tech has changed at least in the short to intermediate term. No longer asset light and low balance sheet leverage. In my eyes this should reduce/eliminate returns from increasing valuations. Returns will be far more dependent for large cap tech from profit growth.
I never underestimate the C-Suite’s greed, which can lead to financial engineering (including buybacks), if necessary, in order to meet EPS targets in their executive compensation plans.
Curious = do you think that their “versus issuance” offset to versus Gross buybacks their way of calculating NET buybacks which strips out buybacks to offset options and restricted stock issued to employees?
For investors, the net buyback number is more important in the short run
Should buybacks even be allowed? Weren’t they illegal until the “greed is good” 80s?
Buybacks have been around since well before then. They used to be packaged as tender offers. Here is my all time favorite buyback story.
One of my individual stock holdings has been executing a modern day version of this story for the past decade. I was actually present at the annual meeting (via zoom) when a representative of a large Canadian pension fund handed the CEO a copy of this story in about 2013.
Still invested in this stock.
https://novelinvestor.com/the-teledyne-buyback-effect/