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"It's hard to go wrong when you buy dollar bills for $0.80," says The Oracle. "Mr. Benmosche,...

"It's hard to go wrong when you buy dollar bills for $0.80," says The Oracle. "Mr. Benmosche, you'd be buying them for $0.63," says Todd Sullivan, urging the AIG CEO to launch a share repurchase rather than dividends or debt repayment. Those squawking for a dividend don't know what's best for them or the company, says Sullivan. A $10B buyback would provide a 40-50% return on the firm's capital - no dividend plan can match that.
Comments (2)
  • DeepValueLover
    , contributor
    Comments (7838) | Send Message
     
    BINGO!

     

    Dividends over buybacks makes no sense now.
    4 Apr 2013, 12:02 PM Reply Like
  • papayamon
    , contributor
    Comments (1014) | Send Message
     
    buy shares back. there's simply no better use for capital at this point.
    4 Apr 2013, 12:33 PM Reply Like
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