Tag: Buybacks

Why Tax Stock Buybacks?

Commentary The Biden administration has passed a 1 percent tax on stock buybacks. A stock buyback is when a public company uses its own cash to buy back its own stock. Sometimes it is financially in the best interest of the company to actually borrow money to buy back stock. Democrats dislike stock buybacks because…


Buffett On Buybacks

Commentary Warren Buffett defended stock buybacks in Berkshire Hathaway Inc.’s  2022 Annual Report (pdf), pushing back on those railing against the practice he believes benefits all shareholders. “When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued…


How Share Buybacks Benefit Investors

By Kiplinger Staff From Kiplinger’s Personal Finance Question: What are share buybacks? And as an investor, should I be glad about share buybacks or not? Answer: Companies have at their disposal two main options when they want to return cash to shareholders. Dividends tend to be preferred by income investors. A dividend is a cash…


UBS Plans More Share Buybacks as Wealth Management Shines

ZURICH—UBS struck a confident tone on Tuesday, reaffirming key financial targets and pledging more share buybacks next year, buoyed by higher interest rates and strong wealth management inflows. The world’s biggest wealth manager reported a smaller-than-expected 24 percent slide in third-quarter net profit, with lower costs and rising interest income helping to mitigate the impact…


JPMorgan Suspends Buybacks, Warns on Global Economy as Profit Slumps

JPMorgan Chase & Co’s Jamie Dimon struck a cautious note on the global economy as America’s largest bank reported a worse-than-expected 28 percent fall in quarterly profit and suspended share buybacks in the face of growing risks of a recession. The chief executive also stressed the need to build capital reserves due to increasing requirements from…


Berkshire Hathaway Profit Swells to Record, Extends Buybacks

Warren Buffett’s Berkshire Hathaway Inc. on Saturday said fourth-quarter profit swelled, boosted by gains in many of its businesses and common stock investments such as Apple Inc., and said annual earnings reached a record high. Berkshire also signaled renewed confidence in its own stock, repurchasing $6.9 billion in the quarter, and boosting total buybacks in…