I started investing in the stock market because of dividends. What matters, in my opinion, is that if you invest and earn more money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can pass that on to your children, giving them a head start in life. I've invested over $600k in dividend stocks over the years; I continue to buy more today and will continue to do so until the price lowers even further.

@McElvinn

Жыл бұрын

It's always inspiring to hear from a veteran investor who has weathered the storm and come out on top. When your portfolio turns from green to red, it might be unsettling, but if you have invested in great companies, you should just keep adding to them and stick with your plan.

@corrySledd

Жыл бұрын

@@McElvinn I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.

@AUstinnesc

Жыл бұрын

@@corrySledd Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems

@corrySledd

Жыл бұрын

@@AUstinnesc My advisor is NICOLE DESIREE SIMON , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market

@AUstinnesc

Жыл бұрын

@@corrySledd she actually appears to be well-read and educated. I just did a Google search for her name and found her webpage, I appreciate you sharing

Jan 2020: "Buybacks are now a big part of the landscape of American finance. There is no sign that is about to change" Oh how quickly things can change.

@tomd1434

4 жыл бұрын

Lol

@Denny_Dust

4 жыл бұрын

Just what I was thinking lol, all the airlines are on the verge of bankruptcy and could have had more emergency money on hand if they didn't blow it all on stock buybacks.

@Felddagryph

4 жыл бұрын

Also, many companies used previous "bailout" money for stock buybacks. The economy would have been much better served by giving money to the poor and middle-class, demand-side stimulus, so there would be demand for products making it worthwhile for businesses to make investments. Without the demand, buybacks or parking the money in the bank were the businesses' only real options.

@l3rd816

4 жыл бұрын

Exactly what I thought after she said it

@PointNemo9

4 жыл бұрын

@@Felddagryph No, with buybacks the money goes to shareholders. Many of which are the middle class you are referring to

Buybacks help partially to explain this extreme bull run we’ve seen. Also makes me nervous that a lot of stock prices are propped up while companies are neglecting R&D and employee training.

@mikiko2872

4 жыл бұрын

Yes. Boeing is the great example of it.

@raybod1775

4 жыл бұрын

Gabriel Calderón There are few rivals because companies were allowed to buy out their competitors. The executives don't care because they won't be around when the company goes under.

@yousmallfish5069

4 жыл бұрын

Short term wizardry > long term vision.

@gshak33

4 жыл бұрын

DaG life Wow you are really spamming that referral link aren’t you?

@amcmovie3611

4 жыл бұрын

Gabe Shakour can u tap the link and sign up I don’t think u well 😂 it’s cool if you don’t but don’t know nobody hustling game lol 😂 peace and love good vibes only bro bro

Oh the irony of this video being recommended to me, as corporations are now asking for bailouts to get back their $ back to early 2020 prices

@nickspaulding1511

4 жыл бұрын

Marius I RIGHT. Smh. Atleast stock prices are worthless right now. Easy to make money later

@FoamySoaps

4 жыл бұрын

Not really ironic. It's being recommended because lots of people are searching for it.

@kingkoi6542

4 жыл бұрын

Why do you think so many CEOs jumped ship?

@raknoknak

4 жыл бұрын

This is not ironic at all... As news of bailout being tied to buyback is coming out, many people search videos on what buyback means and the youtube algorithm tags the topic to show up in recommended videos

@nic00561

4 жыл бұрын

Not a bailout. Unlike 2008, where companies were bailed out of its own mistakes, the government has forced business to shut its doors. This is relief due to intervention into normal markets. Necessary intervention. But not a bailout. If I take a sledgehammer to your your vehicle......paying for the repairs is not a gift. It’s retribution.

Worker training is the biggest issue in any industry right now. Everyone is willing to hire an expert or skilled worker but not willing to train one from within or from local work force.

@richardwieder885

4 жыл бұрын

Good call! The construction industry has an incredibly hard time in taking in skilled labor. It takes years to have a fully trained tradesman from within. In my case, the majority of professional tradesman were there for ten or fifteen years. We rarely see someone stay the first year because of the physically demanding nature. Licensed trades like HVAC, electricians, and lineman are losing a lot of seasoned workers within the next 10 years. The US is scrambling to find professionals as is.

@rs72098

4 жыл бұрын

Yep, demographics are also shrinking, corporations still falsely believe that the labor shortage will go away, it's only just beginning. Automation won't save them either.

@sarfrazahmed8178

4 жыл бұрын

@@richardwieder885 that's a different trend. Most millennials or Gen Z don't want to work in the labor intensive industry when there are other platforms to make a liveable wage.

@alexanderbankowski5617

4 жыл бұрын

@@sarfrazahmed8178 The thing is not everyone is smart enough, sociable enough, competent enough and clean enough to do the types of jobs they think they are entitled to. I see it all the time in my line of work, my company opens the door to anyone who can talk on the phone and pass a test, we pay 50k for licensing, literally giving these kids what they think they want, and yet they still leave after a year because "work life balance". Most millennial and gen z are perpetually unsatisfied due to the subversive idea of self esteem entering collective consciousness. Every fleeting thought is valid, every impulse and every whim is just, and every opinion is warranted in their minds. I love watching them break down crying realizing they are fundamentally broken, then they leave and either retreat to the basement communist tier or go work 3 minimum wage jobs because it allows them to coast. Not everyone can work a white collar job, but everyone thinks they are better than blue collar, and when they realize they aren't, they are mad at the system when really they should be mad at themselves

@3rkid

4 жыл бұрын

@@alexanderbankowski5617 ok boomer

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@presley492

Жыл бұрын

I've been investing with TERESA JENSEN WHITE's guidance for a few years and I couldn't be happier. Her company has given me the best ROI while preserving my capital and has the most thorough investment guidance out there. It also never burns my money with speculation or poor philosophies of risk management.

@presley492

Жыл бұрын

*TERESA JENSEN WHITE,* that's her official page name you can do a web search to get in touch with her

@fartsfartington9019

Жыл бұрын

Terisa Jensen stole from me.

Boy, this didn’t age well ...

@Wowsers101

4 жыл бұрын

Aged like milk

@nicholasgarcia8896

4 жыл бұрын

I was coming to comment this lol

@chrisjfox8715

4 жыл бұрын

I wonder how many poor Conservatives are still claiming "small Government" and "let the market decide"? We're basically spending tax dollars and risking inflation to bail out companies that failed to save money for a rainy day, all because they were more interested in propping up a fake financial image.

@huguesjouffrai9618

4 жыл бұрын

@@chrisjfox8715 it is stupid to think that people would recommend the same policies in normal time as they would in extraordinary times (such as when government asks a third of companies to stop producing in order to protect people's health). And if you think the rules of business should be the same in extraordinary and ordinary times then you don't understand much about economics. Companies and their shareholders shouldn't be punished because they are stopping their activities to help a worldwide effort: they should be helped.

@Cross-xm2fr

4 жыл бұрын

They can sell all those precious shares they bought back to the federal government whenthey need a bailout

And now when companies need cash, they are now having to seek government bailouts... if only companies saved some of that money they use for buybacks...

@sliickers

4 жыл бұрын

yoshi101 You never want companies saving money. It’s better for everybody if the company distributes that wealth.

@kinghassy334

4 жыл бұрын

@@sliickers its better for the economy if they dont do buy backs while going into debts

@ltdowney

4 жыл бұрын

sliickers - Pretty sure you don’t want companies going out of business either, and that’s what strict free market capitalism would have them do right now without any cash reserves.

@sliickers

4 жыл бұрын

@@kinghassy334 Well no, not exactly. They are giving money back to investors with buybacks. The investors can use that money for more capital investment, boosting the economy. It also increases the companies earnings, which they can use to expand or upgrade their business. Most companies don't do this however

@SpirosPagiatakis

4 жыл бұрын

@@sliickers :D :D :D You are awesome!

I have an exam on this tomorrow. Perfect timing

@TheMatthew9201

4 жыл бұрын

Nargis Hoque they knew

@SykotikShadow

4 жыл бұрын

Funny thing is on this was illegal until Reagan made it legal again. Somewhere between the 1940s and 1970s it was illegal to do stock BuyBacks because of the fact that the companies weren't giving back to their employees until it was essentially made illegal and created the great economic boom between those times and made affordable cost a living a real thing.

@nargishoque6007

4 жыл бұрын

Sykotik Shadow oh wow that’s interesting, thank you for sharing!

@SykotikShadow

4 жыл бұрын

@@nargishoque6007 check this out. kzread.info/dash/bejne/q6CAtq-SpJWanKQ.html and along with the lowest percentage interest rates we have ever seen it's making it easier for people who have money the rich stay even richer and not invest into these companies that they buy and sell off for more profit then when they bought it. Essentially the world's economy will go bust.

@harshitmadan6449

4 жыл бұрын

@@SykotikShadow The real reason was lack of foreign competition for a brief window of time post WW2.

Buybacks is a lazy way to increase stock prices, instead of actually growing the company.

@INeedMySpaceTech

4 жыл бұрын

How do you feel about dividends?

@Mel684

4 жыл бұрын

Jeremy 😂😂😂

@tomblack6972

4 жыл бұрын

Also makes the executives’ stock options worth a lot more

@vinaymane5538

3 жыл бұрын

@@INeedMySpaceTech dividends drop stockprice, not increase it

@27k76

3 жыл бұрын

@@vinaymane5538 his point was that it doesn't grow the company either

Wealth from stock buybacks just dissapeared in 3 weeks, so ya, maybe not the Plutocracy's greatest idea.

Funny thing is when the company board vote for stock buybacks, they started to sell their shares... Great timing all things considered.

@jibrish4802

4 жыл бұрын

@Red Divinity I too love speculating in the comment sections of KZread videos

@SuperMarkHere

4 жыл бұрын

Red Divinity this is not at all what it is hahaha

@aplsharusha

4 жыл бұрын

Exit strategy! 2008?

@WheelerRickRambles

4 жыл бұрын

Disguised insider trading

@idontlikeyouyo

4 жыл бұрын

Selling shares has lower tax rate than getting dividends because it's based on proportional capital gains. This is why investors love buybacks and sell shares over getting dividends.

It sounds like a company can manipulate stock metrics to influence how shareholders are able to view their performance...

@ChrisGilliamOffGrid

4 жыл бұрын

Manipulate? If that's what you want to call it, but it's not like the effect isn't real. No matter how you increase the EPS, it's still increased. As a shareholder I support buybacks.

@datazero7795

4 жыл бұрын

It’s their money, they can do what they please with it. Every company manipulates their stock, it’s part of the game

@datazero7795

4 жыл бұрын

barebearburiesbarrysberries no, wealth taxes have never worked in history. If you want a strong middle class you need a strong currency. Wages don’t keep up with inflation so weaker dollar means asset prices inflate and the rich pay off their debt quicker than a regular ole joe. It’s a sick game they designed, we just have to play it and take over

@datazero7795

4 жыл бұрын

Keoni Mana that’ll never happen until we see a full on revolution. But I do agree, it’s the only fix. We need a hard reset on this economy

@artuselias

4 жыл бұрын

Manipulating in the sense of decreasing price fluctuation. Just a smart way of getting rid of unused cash.

They used to be illegal - for good reasons.

@kinghassy334

4 жыл бұрын

It's funny how this video doesnt mention a company has the option to raise wages for its worker as a reward for thier hard work at 1:24. Corporate media is so subtle.

@ow4744

4 жыл бұрын

@@kinghassy334 pretty incompetent of the corporate shills to forget to omit higher wages from their Chuck Shumer quote at 3:27 isn't it?

@matthewlangley3524

4 жыл бұрын

@@kinghassy334 please stop pretending you have any understanding of the economy or business while at the same time being a Bernie Bro.

@DrAAAli

4 жыл бұрын

Easy formula really, buyback and drain ensuring at anytime the company has only $5 worth of gas in the tank....crises will hit once every ten years, and governments will bail you out aka stimulus...this cycle repeats once a decade and each time the ordinary taxpayer is used as a wedge to normality via high taxes, low wages, higher cost of living etc etc.

@Rommie26

4 жыл бұрын

Can someone explain why they were illegal and why Reagan made them legal?

Shareholders love buy backs (speaking for myself) basically a dividend without having to pay taxes.

@jannisarie

4 жыл бұрын

Depends if they just diluted the shares out again with options for execs. GE was doing huge share buybacks before they went down. They could use all that cash now and do the same buybacks for a fraction lol.

@chrisgouger9299

4 жыл бұрын

What you profit from today you'll have to pay for tomorrow. The biggest bubble in history will eventually pop and it will take a long time to come back from.

@TheGhostOperative

4 жыл бұрын

lol building castles in the air. remember, nothing comes for free.

@raybod1775

4 жыл бұрын

It's all temporary because the corporation winds up in massive debt from the buybacks then will not be able to service the debt and then goes under like Sears, Kodak, GM...

@readynowforever3676

4 жыл бұрын

Ray Bod Sears Kodak & GM (GM shouldn’t even be on your list) didn’t go under because of “debt”, they went under because of competition. These “buybacks” (in this example) we’re executed with “stockpiles of cash”, 1:20 not lines of credit.

No stock buy backs are not good. Management puts a company into debt to artificial raise the stock price instead of investing in it's OP-EX or CAP-EX. This type of thing is making the U.S institutions 2nd rate.

The glorious trickle down economy right here in this video.

@joshn2342323

4 жыл бұрын

but it does trickle down. Unemployment is at lowest rate in decades.

@Camelotsmoon

4 жыл бұрын

@@joshn2342323 Look up underemployment.

@aavash123

4 жыл бұрын

@@joshn2342323 sorry what was that?

@nicholashildenbrand8632

4 жыл бұрын

@@joshn2342323 it all implodes when people are focused entirely on short term gain with stock buybacks. Here we go again. Another goverment bailout for all of those "saavy" businessmen.

We need a video on the "stock options" for executives.

It's amazing that among the options companies have with their stockpile of money, "giving back to their employees" was never even mentioned. Just wow

@michaelmoses8745

4 жыл бұрын

I noticed that as well.

@LateDude96

4 жыл бұрын

Thats called salary

@tiburcee

4 жыл бұрын

Just look at 3:30! Do not speak if you don’t watch thé video until the end !

@II-mw8qh

4 жыл бұрын

If a company goes bankrupt, no employee will bail the company out.

@user-rs5hb6gd8e

4 жыл бұрын

owners of the company earn theirs "wages" in the form of share buyback. Nobody will own stocks of they will not be compensated for that - people will buy cars and houses instead of stocks and there will be no jobs for workers.

How about investors value a firm on other metrics rather than relying on EPS? Also, why should a company be penalized when buying back stock? Perhaps other possible investments have a negative NPV. I don’t believe share repurchases are as evil as these politicians make it to be. Let the market do its thing.

Building new factories? Lol You mean getting new contracts in China or Mexico?

@arcodax3302

4 жыл бұрын

Aquí en México ya tampoco quieren invertir, ya todos se van para Indonesia :(

@ChrisGilliamOffGrid

4 жыл бұрын

@@arcodax3302 Que lastima.🙁

@ricardoramos3754

4 жыл бұрын

You mean china,,there is not such a thing as Investing in Mexico anymore. Producing in china is way cheaper than in Mexico nowadays.

@marczhu7473

4 жыл бұрын

@@ricardoramos3754 China relocate low skill to Vietnam and other neighbor countries.

@kingkoi6542

4 жыл бұрын

Just so that Karen doesn't have to spend an extra dollar or two...

*stonks*

great, brief explanation with helpful visuals! thanks!

I like how in Germany the board doesn’t just represent the investors it represents the employees as well

@lindhe

4 жыл бұрын

Cool, I had no idea. I'm fairly sure we don't have that in Sweden, despite our systems being more similar to each other than to the American system.

@christoffersvard6415

4 жыл бұрын

@@lindhe it exists - "Arbetstagarrepresentant". Though, it's not a requirement to have.

@raybod1775

4 жыл бұрын

That's why Germany has so many benefits, jobs and companies.

@robm2681

4 жыл бұрын

Hasn't Germany been on the brink of recession for a while?

@wall street journal I think you guys omitted a big part of the critism on stock buybacks and that is investment in employees i.e. higher salaries. A company except for it’s IP is worth nothing without it’s employees, so I don’t agree with your argument that profits should only go to either the shareholders or other investments in companies. This is also important because that was a big part of the GOP’s argument to lower the corporate tax rate to 21%, which we all know the companies didn’t do and instead bought a lot of their stocks back.

@eudofia

4 жыл бұрын

@bigbrotherau05 They didn't omit it. It's right there from 3:20 where they said that Chuck Schumer and Bernie Sanders pointed out those same issues you mentioned. And by the way, it's not WSJ's argument that the profits should go to shareholders, they are just pointing it out that it is the argument companies used to justify share backs.

@user-fw9cc1hx4l

4 жыл бұрын

what you mentioned is deducted as employee cost before profit, it's not the profit.

Buybacks were once illegal 🤕

@dstblj5222

4 жыл бұрын

No the problem with buy backs is that a companies leadership is judged on stock performance and buybacks are an easy way to goose them divides have no such moral hazard, then again I also support banning leveraged buyouts for a similar reason

@bobsteve4812

4 жыл бұрын

Teringventje It rewards a company for doing NOTHING of value to the economy. Of course it should be illegal. Company’s started to become corrupt beginning in the 80s, when these became legal

@bobsteve4812

4 жыл бұрын

Teringventje By nothing, I mean that it encourages companies to increase stock prices, which the vast majority of Americans have no stake in, rather than anything that actually improves their products or services.

@bobsteve4812

4 жыл бұрын

Teringventje And shareholders have little to no value to society. Stakeholders do. This benefits nobody but shareholders and execs and doesn’t even ensure the stability and longevity of the company in the long term. Overall, it promotes short term profit at the expense of long term prosperity

@jonetyson

7 сағат бұрын

Uh, what happened when a company liquidates and goes out of business?

1:34 How about using that money to give higher wages to their employees!

@epzilon1

4 жыл бұрын

That would be socialsm!!1

@911aaron

4 жыл бұрын

@@epzilon1 A company using their money to pay their employees a higher wage? That's socialism? LOL

@stephenramos2824

4 жыл бұрын

Those evil corporations!

@kingkoi6542

4 жыл бұрын

How about that money is completely worthless, only artificial numbers. If we went back to gold standard there would be more wealth circulation, and the middle class wouldn't look like a finished apple.

@kingkoi6542

4 жыл бұрын

@@911aaron Giving people higher wages would just increase the prices of everyday items and food. This is how it's been since the 60's, gradual increase in minimum wage, but massive profit growth on their companies. See more regulations really just hurt the small business owner which hurts you.

When companies have excess cash, they forgot to mention pay their employees more.

@johanocampo5422

4 жыл бұрын

It's their money and flipping a hamburger isn't that hard

@PrezVeto

4 жыл бұрын

That's not how economics works. Employee compensation is a function of the labor market, not how much cash the employer happens to have saved up. Companies do not exist for the purpose of employing workers. That would be make-work.

@davidbeppler3032

4 жыл бұрын

Companies only pay employees what they are forced to. That is the definition of capitalism.

@davidbeppler3032

4 жыл бұрын

@@johanocampo5422 I guess you have never recieved a messed up order? Flipping a hamburger is very hard. Go get a job at a fast food chain. I bet they fire you in a week.

@KevLovesCrypto

4 жыл бұрын

Employees getting paid according to the value they bring to the market place. That is Capitalism...

4:22 is the real reason

@jean-baptistesay6941

3 жыл бұрын

and the video should be those 10 seconds, thats it.

Nevertheless, financial freedom should be the goal of anyone involved in trading stock.

@nyongopeter6636

3 жыл бұрын

Very True. Financial freedom is all about taking ownership of your own finance, having a dependable cash flow flow that allows you to live the life you want. Not worried about how you'll pay bills or sudden expenses.

@stephaniedavies3358

3 жыл бұрын

Stock trading is a surefire avenue to generate passive income en route to financial freedom.

@stephaniedavies3358

3 жыл бұрын

I've earned over $100k in the last 4 months and i'm looking to diversify by getting into rental properties

@lonniesmith105

3 жыл бұрын

Smart idea, i do not have the temprament to go into the stock market now. I do not want to get burnt, we need a UNIVERSAL BASIC WAY to ensure FINANCIAL FREEDOM!

@matthewcurrie8637

3 жыл бұрын

Getting burnt entails not taking the right steps before engaging the markets. If you're considering investing the stock markets in a bid to build your wealth you'll definitely require some professional insights

Now the companies that did buybacks should sell their stock instead of asking for bailouts.

@samsonsoturian6013

3 жыл бұрын

Issuing shares AFTER a crash won't net a whole lot of profit.

Thank you so much, this is the clearest explanation of stock buy backs on KZread!

This channel has saved my life.

So you’re just not going to mention how they used to be illegal because it was a form of market manipulation? Yeah maybe do better next time.

@ayizeb9299

4 жыл бұрын

You actually expect unbiased reporting from a paper called WSJ?

Would love an update on this given the current environment!

Funny coincidence that board members who vote for buybacks are also some of the largest individual shareholders, mostly via very stock option compensation they also voted for themselves

This won't end well. Especially for most of the companies that borrowed money for their buy backs. I'm sure we will see government bailouts in the future.

@electroflame6188

4 жыл бұрын

Bailouts with what? It's not like the government currently has the tax revenue for it.

@syxx242

4 жыл бұрын

good call Trump is already lining it up for them again in the energy sector . everyone in the working class should be getting their torches and pitchforks ready

@bdawk511

4 жыл бұрын

Spot on Hugo things are looking worse everyday.

@buzzlightyear1010

3 жыл бұрын

you literally predicted the future

@jonetyson

7 сағат бұрын

The banks have contracts with companies. If a company tries to rip off a bank by borrowing money to fraudulently give to shareholders before declaring bankruptcy then the directors of the company can be held liable.

Stock buyback = Stock bubble Thats all. But WSJ doesn't say about the credits that spend in the stock buybacks.

What a good video! Thank you sm

Very informative🤒

The money spent on buybacks dont just disappear into the oblivion, it goes right back to investers who put that money into other company. Sometimes a company has reached their limit of growth, where they dont really need any more factories, workers, ect. In that case, the money would justsit there, unused. A stock buyback gets this money back onto the market, reinvesting and that is why they aregood for our economy

Nice timing WSJ.

Are these stocks being retired or are they being counted as assets?

0:40 Skeptics (critics) say the money used on buybacks can be better used by companies for other purposes 0:50 Proponents (supporters) say buybacks put money where it belongs: to shareholders 1:12 Tax cuts in 2017 and low interest rates 1:34 Return money to shareholders: dividends and buybacks 2:02 Buybacks boost Earnings per Share (EPS) because the same earnings now belongs to fewer hands 2:08 EPS = Company Net Income / Shares Outstanding 3:05 Skeptics say buyback money would be better used to grow the company

not one mention of what happens when the stock starts to go down after a buyback

@AliA-by2ju

4 жыл бұрын

What happens then

@lamcho00

4 жыл бұрын

@@AliA-by2ju the company bought it's shares at let's say 1000$ a share. Then the market plummets (600$) and this share can't be sold at the same or higher price. It's a net loss for the company (1000$ - 600$ = 400$ loss). Basically corporations gambling their own profit. I'm sure the board members were betting the prices would continue to rise and they would sell their own stock for extra profit. The bad thing is investors thought they were buying quality stock, instead it ended up being just junk stock. And that's from big corporations which were estimated as low risk investment.

@AliA-by2ju

4 жыл бұрын

@@lamcho00 thank you

Buy back being possible in itself is a joke You have huuuuge conflict of interest "Okay, you can buy your own stock to make it look better" no way someone will abuse this right?

Great content

Very informative!

Stock buybacks always usher in recessions. It's not the cause though. An overheated economy makes return on CapEx lower. So, they can either hold the cash, pay it out in dividends, or buy their own shares. It's just a rational management decision when it's legal. Make it illegal.

when company has flush it can invest in political parties or deposit in swiss bank

I just see buybacks as a company paying off some of its debt. The money spent goes to the former shareholders who sold their shares so they can reinvest it elsewhere or spend it on their needs.

Yup, i said this about a year ago and nobody listens. Buybacks are great for artificially raising share prices. Also that's not including mounting corporate debt which further skews the numbers.

@minorcek

4 жыл бұрын

How arrogant of you to say. This has been discussed and largely agreed upon by people who's say no longer seems to matter...that's you and I

@PrezVeto

4 жыл бұрын

There's nothing artificial about it

Stock buyback is what cause this recession. Cov19 is the needle that pop the bubble ,not the cause

My friend was telling me about this today.. KZread algorithm >>

@gljames24

4 жыл бұрын

Zeitgeist

@23sahnawaj

4 жыл бұрын

Yeah!! This period of time is right.

@amcmovie3611

4 жыл бұрын

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thank....so much..!!!

How are these data visualised, i want to know and learn

If the company doesn’t find any good use for the money, and they want to give it to shareholders, isn’t dividends better than buybacks then?

@wallacewoodworks9582

4 жыл бұрын

The argument is that dividends are taxable while the buybacks are not

@willliam1420

4 жыл бұрын

@@wallacewoodworks9582 but buyback is on paper, no money flows to the stockholder. Dividend is real money to stockholder. Buyback is used to inflate or prop up share price so the execs get bonuses

@wallacewoodworks9582

4 жыл бұрын

will liam oh I agree, I would prefer the dividend personally. Just sharing the case for buybacks :)

No mention of QE 🤯🤯🤯

My company is closing operations and furloughing workers like crazy for the main purpose of making the share holders more money. Since they started last year they have furloughed 10% of the workforce with what looks to be another 20% this year. Thats over 14,000 people let go. Yet the last quarter of last year they made 1.6billion in profit after buying back 1.1billion worth of stocks. With all that greed no wonder we were voted the worst company to work for last year. But they don’t care, since their pockets are stuffed.

If a company buys back shares, and the stock still goes down, does that mean the stock would've been even lower had they not purchased their own shares? I know of a company who reported buying back shares this past quarter, but this past quarter their stock is down -15%.... so would they have been down -20% if they hadn't repurchased?

Funny that none of the options listed at 1:25 involved giving back to employees. How bout bonuses or wage increases?

@tiburcee

4 жыл бұрын

Fernando D if you had seen the video until the end, you would have seen that they talk about higher wages and retirement benefits

@tiburcee

4 жыл бұрын

3:30

@II-mw8qh

4 жыл бұрын

It's called Salary.

Nowadays, stock buybacks are just another way to redistribute wealth to upper management. Most of the buybacks don't return them to investors since they just prevent the further dilution of stock value buy essentially buying back the stock options given to senior management. So the most of the benefits to retail stock holders is just not further diluting their shares instead of giving retail shareholders most of the benefits. I'll be impressed when the buybacks have a better effect on the existing float as opposed to just offsetting the options being showered all over the senior managements

Buying on leveraged loans on adjustable rates

Why even invest in R& D when a bailout is always an option. Buybacks favour executives who usually have share options attached to their contracts at set prices.

@samsonsoturian6013

3 жыл бұрын

Bailouts aren't an option for most companies. The Feds only use them on companies they believe will cause suffering if they fail.

"There is no sign that it's about to change". Idk about lol

The buy back bubble.

AWESOME

@amcmovie3611

4 жыл бұрын

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I thought buybacks give stockholders a capital gain instead of a taxable dividend. WSJ didn't mention that. Am I wrong?

@PrezVeto

4 жыл бұрын

No, that's correct. That's one of the major reasons companies do it

stock buybacks could lead to the next overvaluation of companies

@weswest8666

4 жыл бұрын

Kevin Kang already there bro, stock price goes up, up and up!

@is1dre

4 жыл бұрын

Companies don't buy back shares for more than they are worth on a P/E or P/B basis (company Boards would not let that happen as they don't want to be sued), so buybacks can't over value a company. Only ignorant investors, like those who own shares in Tesla, a structurally unprofitable company, create overvaluations.

Huge tax incentives hence why you see so much in the fourth quarter

It feels so roundabout to say that the EPS increased, which is a stock indicator, so that now people are interested. Like stockholders don't just blindly follow "indicators". The point is that when the company buys back stock, everyone else's stake in the company increases. This is because the company essentially bought out some of its shareholders. I mean of course if you have a company with three shareholders, and two of them buyout the third with cash, the two people now own half the company when they used to own a third. It's just changing the structure of the company. The problem is, IPOs are necessarily a loan, a company only ever wants to IPO because it wants a say to sell its stocks for cash. If you disallow buybacks, then your telling the company that its literally not allowed to pay back its loan, it's forced to pay interest for ever. This sounds like a bad deal, and could disincentivize IPOing in the first place.

Disappointed that higher wages as a use of cash wasn't mentioned until 3:30 because that's Central in this debate

Also, they take out on debt, and then they get BAILED by the government

@Huddy52

4 жыл бұрын

Yet when we say the government should use spend that money on treatment for diseases those companies cause we get called entitled lazy and "stealing from the successful'

@movingman07

4 жыл бұрын

Exactly

@Quas08

4 жыл бұрын

Look at the airlines now 🤷🏾‍♂️

*i was reading the intelligent investor and it was interesting to hear grahams thoughts*

@Je.rone_

4 жыл бұрын

@Combatant Analysis i would for sure!

@president-8253

4 жыл бұрын

Why is your letters fat?

@theradicalaxe553

4 жыл бұрын

PRESIDENT - He bolded them

@president-8253

4 жыл бұрын

@@theradicalaxe553 No, because he is black and fat.

@CliqueOverAnything

4 жыл бұрын

@@president-8253 why racism on such a topic ?

Please make more such videos @WSJ

For all the people saying that they didn’t even included: « giving back to employees/ higher wages »: they did, watch the video until the end please ! 3:30

Applauding myself after a year of consistent dedication and growth, investing 40% of my pay monthly into ETFs and Index funds, I can boast of $17k in profits so far. Cheers

@johnsonmchughes8116

3 жыл бұрын

There’s nothing I love more than ETFs, investing the least in it is better than waiting on this wrong government manipulating everyone, kudos to your hardwork.

@emmyoregon1983

3 жыл бұрын

How can I get to learn and understand how to go about this more? Can you help out

@americandreamer828

3 жыл бұрын

You can look up videos on KZread and use google but I work with a trade analyst Eddy Bruke. You can also look him up if interested. Connecteddybruke@gmail,

@Ianart26

3 жыл бұрын

loser. What a boring life

@juanmorales5123

2 жыл бұрын

Way to go! I hope you’ve had more profits by now. Cheers

What about paying the employees, from whom the business derives value? Is that too scary to mention?

@Dong_Harvey

4 жыл бұрын

So employers are not obligated to pay employees? Didn't know Milty advocated slavery too..

There's nothing wrong with stock buybacks. You have to remember opening new factories and exploring new business adventures are risky. Peter lynch best explained it as diworsification.

So do you have to sell it back the the price they are asking?

Stock Buy Backs were an illegal practice about 30 years ago. The reason being . . . it was considered to be a means of stock price manipulation. This WSJ piece whitewashes the practice.

@PrezVeto

4 жыл бұрын

Alcohol was also once illegal. Is a documentary about alcohol a "whitewash" for not mentioning the reasons of the temperance zealots?

@masonainsworth

4 жыл бұрын

@@PrezVeto Slavery was once legal . . . does that mean we should go back to a bad idea? Of course not! Because in an honest wholehearted analysis, ALL the moral and ethical implications are addressed. Nothing is left out, or whitewashed.

At 1:20, it could also increase workers wages and reduce pension fund under-funding.

@jimkennedy4509

4 жыл бұрын

DougOfTheAntarctic few companies have underfunded pensions. The PBGC has major penalties for underfunding.

@DougOfTheAntarctic

4 жыл бұрын

@@jimkennedy4509 That's good to know. Unfortunately, it's not the case in Canada. Recently, Sears Canada went bankrupt with a big deficit in their pension. There's really no one to look to after the company's gone broke.

@PrezVeto

4 жыл бұрын

Compensation is properly a function of the labor market

@DougOfTheAntarctic

4 жыл бұрын

@@PrezVeto Some firms actually have increased wages to keep staff. It's not as crazy as you think.

Nice graphs. Please show one that shows stock buy backs by year from before 1982…..

How do companies decide who’s shares to buy from during a stock buyback?

@isaacc3307

3 жыл бұрын

Lol there are always people and brokers selling shares on the open market.

Buying stocks back to just resell later here in a year or 2.

@xmorse

4 жыл бұрын

James they could just issue more shares without buying back

@CapitalismInspired

4 жыл бұрын

MORSE Don’t you have to pay capital gains tax when you sell the shares (in the buyback) which would include the premium above the market price that is ordinarily offered in share buybacks?

0:20 see any similarities between 2007 and 2019?

@magix4152

4 жыл бұрын

Yup it's gonna happen again and I Will be here benefitting from it :))

@andrewd9387

4 жыл бұрын

Magix why’s that

@magix4152

4 жыл бұрын

@@andrewd9387 house prices go down and and People need to sell The house to not go bankrupt and im here to buy that house reqlly cheap and sell it expensive 10 years after

@PixelBoyMiner

4 жыл бұрын

@@magix4152 it's nice to look at it like that but your pfp suggests you aren't a Mr money bags real estate investor

@magix4152

4 жыл бұрын

@@PixelBoyMiner i like how u can see All of those things just from a profile picture :)

Uhmm my memory of stock buy backs does NOT necessarily mean the shares are annulled. But rather the shares are held by CEOs or the company. ie: it does not necessarily affect the EPS. Buy backs, place the shares in the hands of the decision makers so as to allow the decision makers more power over the business.

Basic finance. Just a way to show a large income/share ratio. A big EPS makes the company look attractive. That's what the investors look at.

Alas, the minimum wage worker gets screwed once again!

@paulhodireff9260

4 жыл бұрын

Please explain how.

@iVince905

4 жыл бұрын

​@@paulhodireff9260 Majority of the companies don't have incentives to increase wages which is due to maximizing the profits earned to give out to shareholders.

@PrezVeto

4 жыл бұрын

@@iVince905 There is no rational reason for a company to pay employees more simply because they have more money. Employee compensation is a function of the labor market, just like the price of any other good.

the workers basically get zero

@PrezVeto

4 жыл бұрын

No, they get their compensation package, same as before

The buyback decrease the floatshare or the outstanding share?

So a CEO would incur debt, just to raise their EPS? Wow. How do buy backs generate revenue?

Inflating artificially the value of stock could create a Market Bubble.

@PrezVeto

4 жыл бұрын

It's not artificial. Demand for the stock really does increase, so so does the price

@jascrandom9855

4 жыл бұрын

@@PrezVeto Its artificial in the sense that they don't reflect a proportional increase of economic activity and earnings. They don't reflect the company's true profitability.

@PrezVeto

4 жыл бұрын

@@jascrandom9855 If you want to know earnings, look at earnings. It's not rendered "artificial" because people assume share price indicates something it doesn't.

I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio of $450k dwindle away is such an eye -sore.

@maga_zineng7810

3 ай бұрын

There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.

@CraigChap_6898

3 ай бұрын

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.

@audeywolsh

3 ай бұрын

I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?

@CraigChap_6898

3 ай бұрын

When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.

@audeywolsh

3 ай бұрын

I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.

It's all about financial engineering to benefit from QEx/ZIRP. If Fed can fake it, then CEO's and their consultants and bankers want to be in on the game.

Well, they also then have to pay fewer out in dividends. It makes sense.

Stock buy backs don't destroy money, they just transfer it. The stock seller decides how to spend it.

@Tamperkele

4 жыл бұрын

I would imagine that they won' invest it into the company whose shares they just sold.

@PrezVeto

4 жыл бұрын

@@Tamperkele So? If it's not the most productive use of their money, then they _shouldn't_ reinvest in it.

@Tamperkele

4 жыл бұрын

@@PrezVeto Of course, but selling the stocks isn't the problem here. It's when firms choose to buy back their own stocks instead of investing that money back into the business.

@deathlarsen7502

4 жыл бұрын

Your comment is pointless. Nobody said that fool. You aren't clever

Seems to me we have a law on the books limiting compensation to 1 million dollars a year, however, it did not include bonuses and stock options. I think we need to move towards a more European style of boards of directors where the labor for the corporation is more fairly represented on the board of directors. Our upper management compensation system is way out of whack with what the rest of the modern world deems fair and appropriate. It is time for management to be rewarded for increasing the market cap of the companies they work for and not on the price of the stock. These are two different parameters. One should only be rewarded for increasing the market cap above the highest it has ever been. In the case of mergers, buyouts, acquisitions and emergent bankruptcies the highest market caps need to be added together and market cap increased above the combination before management is rewarded. Today, in the United States the average CEO makes 350 times what the average worker earns. Compare that to the late 1970s when CEO pay was roughly 30 times the annual compensation earned by the average worker. No place is the CEO to average worker pay balance more obscene than in the very media conglomerates that would shape our worldview. While the corporate business press hawks the “longest economic expansion ever’, the wealth concentration accelerates and the income gap widens. At the same time, the labor movement continues its decline, a slide many trace back to the 1981 mass firing by President Reagan of the striking air traffic controllers. www.alternet.org/2019/01/the-single-most-important-pro-labor-speech-of-the-shutdown-was-not-given-by-aoc/

so then would that make the actual share value of those buyback companies such as Apple is far lower? then maybe we cannot really sure if Apple had reach $1trillion in Actual stock valie

Underneath the question of Stock Buybacks is the question of companies being able to buy stock in the first place, and underneath that is the question of corporate personhood.