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Originally Posted by jbergey22
Maybe some of the bank buy backs seem off but companies have to show growth or potential growth for investors to want to invest in them so I really am unsure of where you are going with this?
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Companies are not making money when their stock price goes up. The current investors do. Buying back stock is done to pump up the price of shares for those investors, nothing more. It offers little to no value to the company.
From what I've seen, none of these companies we are talking about had secondary offerings in the last 10 years. They were not courting new investors. So I'm not sure what your statement has to do with what they did.
And I'm not saying Verizon or AT&T didn't invest in their company. I'm saying that if you're in a position to buy back a substantial amount of shares in your company, I would hope you had contingency plans in place for economic downturns first.