The Hammer

Four Tech Companies with Tremendous Balance Sheets

"I hate share buybacks - that is why I am down on Microsoft. By definition, buybacks destroy the capital structure and it gives cash to short-term holders. Long-term shareholders receive nothing. "

You have it backwards. Long term shareholders benefit handsomely from buybacks if shares are bought back at great valuations not the 40-60 times earnings buybacks ko or wmt did. Thus leading to meaningful declines in share count of time which increase long term stock ownership. Another thing: buybacks only benefit the shareholder if cos execusitives and employees are not feeding at the trough of stock option dilution. many of these buybacks for tech cos are just a coverup for these outrageous transfer of stock ownership to employees from shareholders. Stock options were the worse form of compensation ever invented.