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Don't Buy Into Share Buybacks

This article is flawed in many ways. Companies should buy back shares if the ROE on the company shares exceeds the expected ROI of capital spent on growth initiatives. For companies such as MSFT which generate significant ROE, the decision to buy back shares becomes very appealing relative to growth opportunities. The same can be said for certain oil companies - if the expected ROI of developing new finds is lower than the ROE, the smarter choice is to buy back shares.