Ray Lopez

Amazon's $500 Million Buyback Plan -- Dumb Money

Nice analysis of why AMZN could buy US Treasuries and come further ahead than buying their own stock. I suppose that it's legal for AMZN to own so many Treasuries and not be classified as an investment company (recall Google's recent petition to the US government on this point). Also buying back your own stock sends a psychological signal to investors that your stock is more valuable than US Treasuries, which is a powerful message to the vast majority of investors who don't have the time or inclination to do the math. RL