Buybacks and their importance

Paying money back to shareholders does not mean that you have no growth. It may simply mean that you do not need all the capital you generate for your core business

One of the critical tools used by corporations globally and especially in the US to return capital to investors is buybacks of stock. Partly done to offset dilution due to share-based employee compensation and partly due to greater tax efficiency, it has become the primary means to return capital to investors. One of the less well-known facts is that since the year 2000, net share buybacks in the US have totalled $5.5 trillion. They have been the single-largest source of demand for US equities. The next biggest source of demand has been buying from foreign investors, and that totalled $1.8