BT Mark to Market: Are share buybacks good for investors? (Ep 28)

Published Mon, Feb 13, 2023 · 05:50 AM
    • Why is it a good thing for investors when companies repurchase their shares from the market?
    • Why is it a good thing for investors when companies repurchase their shares from the market? PHOTO ILLUSTRATION: BTVISUAL

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    Synopsis: Listen to Senior Correspondent Ben Paul’s analysis and insight on market trends and corporate issues in Singapore in this podcast series based on his weekly column in The Business Times.

    Share buybacks are a means of returning cash to investors. But they discriminate between exiting shareholders and continuing shareholders. Ben Paul explains why investors should carefully consider if these exercises are in their best interest, and press corporate boards to raise their game.

    Highlights:

    02:10 A signal business is thriving, and stock prices are too low

    05:37 Why companies often pursue buybacks at the wrong time

    07:53 Companies repurchase their shares too opportunistically

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    10:46 Warren Buffett’s approach to buybacks should be emulated

    13:39 Investors can vote against share purchase mandates at AGMs

    Produced by: Ben Paul (benpaul@sph.com.sg), Howie Lim and Claressa Monteiro

    Edited by: Howie Lim

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