Buybacks vs. Dividends
Buybacks offer a unique advantage by allowing investors to defer taxes, unlike dividends which are taxed immediately. The debate surrounding buybacks often stems from misconceptions, such as the belief that funds used for buybacks could be better spent on employees. However, the reality is that companies must eventually return capital to investors, making buybacks and dividends fundamentally similar in their purpose.In this clip
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All Else Equal: Making Better Decisions
Ep 10 What's Wrong with Buybacks?
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