S&P 500 companies expected to buy back $800 billion of their own shares

'S&P 500 companies expected to buy back $800 billion of their own shares' I stand by my original comment: Publicly traded companies reducing shares outstanding is a good thing. For those that want to participate, save your money and buy stocks!

The conservative person, who buys a $500 phone, rather than the $1000 state-of-the-art' latest model, and saves and/or invests that money, will have a lot more than the person that squanders it.

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But then nothing's going into R&D, increased production capacity, etc. ... it's not good for growth. It's a stock boost usually--but even now when I look at all the announcements of buybacks both done and planned, stocks are really moving on this. Berkshire got a bit of a boost when Buffett said he might consider it, but that's about it. It reminds me of the growing trend of activist investors trying to takeover boards to stop long-term growth plans for quick bucks. 

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Buybacks don't necessarily use R&D funds. Many are using tax-cuts. Why shouldn't the people who put money at risk be rewarded? XOM, Exxon-Mobil was one of the majors that did not announce a share back-back and was punished for it yesterday!

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35 minutes ago, Freeze dried mule said:

Buybacks don't necessarily use R&D funds. Many are using tax-cuts. Why shouldn't the people who put money at risk be rewarded? XOM, Exxon-Mobil was one of the majors that did not announce a share back-back and was punished for it yesterday!

Right. When the rewards are no longer flowing, people will stop putting up their money for risk. 

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On 3/8/2018 at 10:46 AM, Freeze dried mule said:

Buybacks don't necessarily use R&D funds. Many are using tax-cuts. Why shouldn't the people who put money at risk be rewarded? XOM, Exxon-Mobil was one of the majors that did not announce a share back-back and was punished for it yesterday!

And so, completely off topic. But I have to ask. Why "freeze dried mule"? I feel there must be some story behind this. Please share.

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On 3/5/2018 at 10:51 AM, Meanwhile said:

JP Morgan said that S&P 500 companies will buy back a record $800 billion of their own shares in 2018, funded by savings on tax, strong earnings and the repatriation of cash held overseas. The analysis far exceeds the $530 billion in stock buybacks the firm recorded in 2017, MarketWatch notes. That will far exceed the $530 billion in share buybacks that was recorded in 2017.

Companies buying your' s own stocks in a bull market? Why? To maintain a bull market?

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Buying back your own shares is a sign that you cannot find any projects with adequate returns to invest in. You are either in the wrong business or have no imagination. It gives a share price boost that may fool the short term shareholder but should be a red flag to the long term one.  

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