Warren Buffett defended stock buybacks in Berkshire Hathaway’s annual letter, pushing back on those railing against the practice he believes to be beneficial to all shareholders. Buffett initiated a buyback program in 2011 and relied on repurchases in recent years during a competitive deal-making environment and an expensive stock market. The conglomerate spent a record $27 billion in buybacks in 2021 as Buffett found few opportunities externally. Repurchase activities slowed down this year to about $8 billion as the billionaire investor went on a buying spree with stocks selling off. Berkshire also took over insurance company Alleghany for $11.6 billion, Buffett’s biggest deal since 2016. Stock buybacks have drawn criticism from politicians who believe Corporate America should use their cash in other ways to boost growth in the long term, such as employee benefits and capital expenditures. Many say buybacks often provide an incremental boost to earnings per share growth, and when companies stop doing that, accomplishing that goal becomes more challenging. Buffett believes
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