Posted by & filed under Financial analysis, Growth & Valuation.

Description: It is one of the great investment conundrums of our time: Why do so many stockholders cheer when a company announces that it’s buying back shares?

Source: NYTimes.com

Date: Mar 25, 2016

Link: http://www.nytimes.com/2016/03/27/business/in-yahoo-another-example-of-the-buyback-mirage.html?ref=business&_r=0

Questions for discussion:

  • What is the buyback mirage warning all about?
  • How should investors weigh firms that choose to take this approach?

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