Comment by disgruntledphd2
Comment by disgruntledphd2 a day ago
> The businesses that have the best long term performance over the previous decades are the ones that have done the most buybacks, hence buybacks do not cause short term-ism
This is mixing up cause and effect. If I have lots of free cash flow, then I can do buybacks which increases EPS. Lots of free cash flow is associated with better performance, which is perhaps why people believe this.